By Alan Charlish

WARSAW, (Reuters) – Poland’s central banks is likely to increase its main interest rates by 75 basis points, to 6.00%, on Wednesday. This comes amid rising inflation and the risk of slower growth caused by the conflict in Ukraine.

Worries over growth have led other central banks in the region to signal that they will slow the pace of monetary policy tightening, but despite a smaller-than-expected hike in May Central Bank Governor Adam Glapinski said this was not the case in Poland.

Most economists believe that the Monetary Policy Council will increase the rate of inflation to 13.9%, up from 12.4% in June. This is despite the fact that the central rate was raised to 5.25% last month.

Marta PetkaZagajewska (head of macro research at PKO Bank Poland Polski), said that “The MPC member are continually confirming they will continue to tighten the cycle as long as inflation continues growing.” She also forecasted a 75-basis point increase.

“There’s no way for the MPC even to stop the tightening cycles.

However, with S&P Global (NYSE:) Poland’s Manufacturing Purchasing Managers’ Index (PMI) showing a contraction in factory activity in May, some economists think the National Bank of Poland (NBP) will again slow the pace of rate hikes.

“Despite inflationary pressures and higher growth, the NBP is expected to reduce the pace of tightening its policy to 50bps at its June 8 meeting.” Morgan Stanley Note from analysts at the (NYSE:)

While growth and inflation data continue to be surprising against NBP’s forecast, the actual details reveal a slowing of core inflation and a worsening in the growth quality mix.

The 20 polled analysts predicted that 15 would forecast an increase of 75 basis points. Four others anticipated a 50-basis point hike. One analyst saw a 100 base-point jump.