World Economy

Polish Central Banker Signals Potential Rate Hikes Amid Energy Price Pressures

Poland's monetary authorities may need to further tighten policy if energy costs continue climbing, according to central bank official Wieslaw Janczyk. The warning reflects broader European concerns about inflation persistence. Across the eurozone, officials are preparing for additional interest-rate increases to combat price pressures. European Central Bank Governing Council member Martins Kazaks indicated rates could rise to levels constraining economic activity if needed to restore price stability. Euro-area households increased their inflation expectations in August, reinforcing pressure on policymakers to act. The ECB is expected to deliver a final rate increase in December as part of its inflation-fighting campaign. Energy markets remain a key risk factor for regional monetary policy, with several officials flagging potential upside surprises to price forecasts.