At its 6-7 November monetary policy meeting, the National Bank of Poland (NBP) lowered its reference rate by 25 basis points to 4.50%, in a move that was widely expected by the market. The Central Bank confirmed that global economic activity remains weak amid stagnation in the Euro area as well as moderate growth in the United States. On the domestic side, the Bank reiterated that growth continues to slow, which has been confirmed by recent economic data. Regarding price developments, the Central Bank stated that "inflation will return to the target in the coming quarters, and might fall below the target in the medium term". Inflation stabilized in September but remains above the Central Bank's target of 2.5% with a tolerance margin of plus/minus 1.0 percentage points. The Bank adopted a dovish stance, stating that if economic data in the coming months continue to show signs of a slowdown and inflationary pressures remain limited, it will ease monetary policy further. In the same vein, NBP Governor Marek Belka indicated that the chance of another interest rate cut in December was "significant".
Poland Monetary Policy
Central Bank cuts rates, hints at further easing
November 7, 2012
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Poland Monetary Policy Chart
Note: NBP Reference Rate in %.
Source: National Bank of Poland (NBP).
Poland Economic News
October 12, 2016
According to the Central Statistical Office (GUS), consumer prices recorded flat growth over the previous month in September, which followed the 0.2% decrease recorded in August.
October 5, 2016
As anticipated by market analysts, the National Bank of Poland (NBP) decided to keep the reference rate at the record low of 1.50% at its 4–5 October monetary policy meeting.
October 3, 2016
The Manufacturing Purchasing Managers’ Index (PMI) rose from August’s 51.5 to a six-month high of 52.2 in September, according to IHS Markit.
September 30, 2016
According to a preliminary estimate released by the Central Statistical Office (GUS) on 30 September, consumer prices recorded flat growth over the previous month in September, which followed the 0.2% fall recorded in August. In annual terms, consumer prices dropped 0.5% in September, which was a less pronounced decline than the 0.8% fall recorded in August.
September 30, 2016
The manufacturing sector business climate index decreased from 4.8 points in August to 3.3 points in September, according to the Central Statistical Office’s Business Tendency Survey (GUS-BTS).