At its latest monetary policy meeting held on 5-6 July, the Central Bank decided to leave interest rates unchanged at 4.50%, in a move that was broadly expected by the market. The decision followed four interest rate increases beginning January 2011, when the Narodowy Bank Polski (NBP) began to withdraw monetary stimulus from the economy. Within a span of six months, NBP has raised interest rates by a cumulative 100 basis points. According to the Monetary Policy Council (MPC), ?the substantial monetary policy tightening implemented since the beginning of 2011 should enable inflation to return to the target in the medium term.? In May, inflation jumped to 5.0%, the highest level in almost ten years, exceeding the 1.0 percentage point tolerance margin around the Central Bank's 2.5% target. However, policymakers stressed that going forward, ?inflation will be curbed by a likely slowdown of economic growth amidst fiscal policy tightening, including a decline in public investment.? More recent CPI data from June confirm the Central Bank's opinion, with inflation falling to 4.2%.
Poland Monetary Policy
Central Bank pauses tightening cycle
July 6, 2011
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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).