NBP Minutes: Most said labour market is less tight and this is reflected in lower wage growth; members said inflation outlook is uncertain, even in short-term

The NBP minutes suggest that most members believe the labor market is easing, which is leading to lower wage growth.

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NBP Minutes: Most said labour market is less tight and this is reflected in lower wage growth; members said inflation outlook is uncertain, even in short-term

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  • Supply shock caused by war in Middle East raises CPI in short-term but also negatively affects economic activity. 
Context

This perception of reduced labor market tightness, combined with an uncertain inflation outlook influenced by geopolitical supply shocks, could signal a need for caution in future monetary policy, particularly with respect to interest rates.

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