At its latest monetary policy meeting held on 10-11 May, the Central Bank lifted rates by 25 basis points to 4.25%, in a move that surprised the market. The decision marks the third consecutive meeting in which the Central Bank has tightened the reins after it began to withdraw monetary stimulus from the economy in January 2011. The Bank justified the rate hike by pointing to increasing inflationary pressures as well as the buoyancy of the domestic economy, supported by a healthy German economy. Although the global economy slowly recovers, the Bank stressed that the economic outlook is still uncertain due to the loose monetary policy of major central banks in developed economies, fiscal imbalances in the Eurozone periphery and the continued political turmoil in the MENA region. The hawkish stance of the Monetary Policy Council (MPC) aims to counter price pressures stemming from higher food and oil prices. In March, inflation jumped to 4.3%, exceeding the 1.0 percentage point tolerance margin of the Central Bank's 2.5% target. Policymakers warned that ?in the medium term, continuing economic recovery in Poland together with further employment growth may gradually increase the wage pressure, and, in consequence, may cause stronger inflationary pressure to persist?. More recent CPI data from April confirm the cautiousness of the Central Bank, with inflation increasing to 4.5%.
Poland Monetary Policy
Central Bank unexpectedly raises interest rates in May
May 11, 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).