Poland's c.bank sees no adverse impact from wage hike plan, Kaczynski says

Credit: REUTERS/Kacper Pempel

Poland's ruling party leader Jaroslaw Kaczynski said on Wednesday that he discussed the planned increase in minimum wage with the central bank governor, who expects the project will have no negative impact on the economy.

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WARSAW, Sept 11 (Reuters) - Poland's ruling party leader Jaroslaw Kaczynski said on Wednesday that he discussed the planned increase in minimum wage with the central bank governor, who expects the project will have no negative impact on the economy.

"It so happened that I had the opportunity to talk to the national bank governor yesterday evening and he presented to me first estimates (showing) whether this will have a negative influence on the economy - none of these things," Kaczynski told public radio.

On Saturday, Kaczynski, who has no formal government post but is seen as Poland's de-facto leader, said that his party, the ruling Law and Justice (PiS), will almost double the minimum wage for workers by 2023, adding to an already expensive list of the party's promises ahead of the general election in October.

PiS is leading in opinion polls due largely to a generous social programme which includes 500 zloty ($127.46) handouts for every child in a family.

In August, the PiS government approved a plan to eliminate the budget deficit in 2020, for the first time since 1990, in a move that could help bolster public support for its ambitious social spending plans.

Critics say, however, that the budget's assumptions are based on one-offs and are too optimistic in light of an expected economic slowdown.

Poland's central bank governor Adam Glapinski is expected to hold a news conference later on Wednesday following the Monetary Policy Council's monthly decision on interest rates.

($1 = 3.9227 zlotys)

(Reporting by Agnieszka Barteczko and Anna Wlodarczak-Semczuk; Editing by Jacqueline Wong)

((agnieszka.barteczko@thomsonreuters.com; +48226539700; Reuters Messaging: agnieszka.barteczko.reuters.com@thomsonreuters.net))

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