Poland’s central bank is preparing more rate hikes as it continues to battle the highest inflation in almost a quarter of a century. So far it has failed to contain price growth after raising interest rates continually for nine straight months.

The benchmark rate was raised by 75 basis points to 6%, as predicted. They further pledged to do whatever was required to stifle the surging consumer prices afflicting the country.

Meanwhile there is rising concern about an economic slowdown, as well as increased displeasure regarding rising mortgage rates.

The central bank maintained overall conditions remain favorable with diminishing unemployment and rising wages, though it conceded that the rate of growth will slow in the second quarter. Governor Adam Glapinski held a news conference Thursday with details.

While the central bank acknowledged the impending economic slowdown, MBank economists on twitter noted it remains in a strong inflation-fighting mode. They wrote, “This will slowly change once the slowdown becomes more pronounced.”

According to a statement by Finance Minister Magdalena Rzeczkowska, after expanding by 8.5% the first quarter on year, the economy now will begin to slow. In May, it has already been noted that new mortgage applications have been cut by half, and manufacturing has begun to contract.

However despite that, inflation accelerated to 13.9% in May, the highest number since October, 1997. Glapinski has said, inflation must slow for two to three months, before the policy of monetary tightening will stop. That is not expected until later this year.

Meanwhile the government has busied itself cutting taxes on a range of products from food to fuel, in an effort to protect the citizenry. There is also a plan to offer Mortgage payment moratorium for borrowers stung by increasing rates, which had been almost zero in October.

Adam Antoniak, senior economist at ING Bank Slaski SA in Warsaw  said, “Inflation is beginning to have a self-reinforcing character so a decisive tightening of monetary policy is necessary. We expect further decisive moves from the monetary policy council in the coming months.”