Transcript of the questions and answers from the press conference

You mentioned market expectations, which do not suggest a larger increase in rates. Could you explain which specific data from the economy could lead you to further increase the two-week repo rate? My second question: how do you perceive wage bargaining, which you consider to be one of the risks, specifically in the direction of a wage-price spiral emerging? And my third question: your latest forecast implies that first reduction in interest rates will happen in the third quarter of next year, albeit from higher levels than where rates are now. In your opinion, when is it realistic to expect that interest rates could start decreasing?

I’ll start with the last question: not a word was spoken today about a possible rate reduction. So, it currently isn’t on the agenda at all. That’s all.

I’ll merge the other two questions if I may. Anything concerning demand-pull inflation could be the trigger for us to raise interest rates. So, an increase in household consumption (which is now in recession), marked growth in wages next year, fiscal factors – a substantially higher public finance deficit supporting household consumption and hence future inflation: these are our main criteria for whether rates will remain unchanged or increase. We are leaving ourselves room to increase rates if we conclude that there is a risk of demand-pull inflation.