Deputy PM and economy minister Waldemar Pawlak has criticised the January decision of the Monetary Policy Council to raise interest rates by calling it “a barbarian act.”

The Monetary Policy Council, which is headed by Marek Belka, also chairman of Poland’s central bank, raised interest rates for the first time in almost three years by 0.25 of a percentage point to a 3.75 percent reference rate.

In January, the Council gave its reasons to raise interest rates as a method to stem inflation, which has in part been spurred on by a global rise in energy and food prices.

However, Pawlak told TVP Info, Wednesday evening that “one has to critically assess the change in interest rates,” adding that “raising interest rates is a barbarian act and something which could destroy the Polish economy.”

“There is no reason for such actions in [Poland’s] monetary policy,” Pawlak exclaimed, furthermore warning that the hike “could result in a serious crisis.” The Deputy Prime Minister also said that the arguments used by the Monetary Policy Council to hike the interest rates are bogus, stating that global markets and not national economies are the cause of energy and food price hikes.

In the interview, Waldemar Pawlak stated that the current unrest in northern Africa will not have a great effect on the Polish economy, saying that “[Poland] does not import fuel from Libya, which is also not a country with which Poland has wide-ranging cooperation.” (jb)