Money in Poland
Poland - Money
Central Bank leaves policy rate unchanged in May
The National Bank of Poland (NBP) decided to keep the reference rate at the record low of 1.50% at its 16-17 May monetary policy meeting, as anticipated by market analysts. In addition, the Bank held its lombard rate at 2.50%, the deposit rate at 0.50% and the rediscount rate at 1.75%. The Bank has left the reference rate unchanged for two years now and Poland’s latest economic developments suggest a stable monetary policy for the coming months.
Looking at data, NBP’s decision came against a background of solid economic conditions: inflation was steady at 2.0% in April, due to a mix of a decline in global energy prices and increasing core inflation. Growth was strong in the first quarter, accelerating from a 2.5% year-on-year increase in Q4 2016 to a 4.0% rise in Q1, according to a flash estimate. The improvement looks broad-based as industrial output, retail sales and sentiment indicators recorded high figures. Moreover, the zloty, though slightly strengthening, has been fairly stable in recent weeks, supporting steady business conditions.
Regarding the rest of the year, the Bank reiterated its wait-and-see stance in the statement, signaling a period of stable interest rates. The Bank emphasized that, “the current level of interest rates is conducive to keeping the Polish economy on the sustainable growth path and maintaining macroeconomic balance.”
Against this backdrop, the majority of our panelists expect the policy rate to end 2017 at the current level, with the Consensus at 1.54%. For 2018, the panel sees the rate ending the year at 1.98%.
Poland - Money Data
|Money (annual variation in %)||11.5||4.2||6.7||8.8||9.6|
5 years of economic forecasts for more than 30 economic indicators.
Poland Money Chart
Source: National Bank of Poland.
|Bond Yield||3.34||0.45 %||Jul 26|
|Exchange Rate||3.62||-1.06 %||Jul 26|
|Stock Market||62,362||0.63 %||Jul 26|
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July 25, 2017
In July, the manufacturing sector business climate index ticked down to 7.4 points from 7.5 points in June, according to the Business Tendency Survey released by the Central Statistical Office (GUS-BTS).
July 25, 2017
In June, retail sales rose 6.1% over the same month of 2016, losing steam from May’s 8.4% growth.
June 26, 2017
In June, the manufacturing sector business climate index decreased to 7.5 points from 8.1 points in May, according to the Business Tendency Survey released by the Central Statistical Office (GUS-BTS).
June 26, 2017
In May, retail sales rose 8.4% over the same month of 2016, picking up from April’s 8.1% growth.
June 20, 2017
In May, industrial production in Poland rebounded and grew 9.1% from the same month last year, which marked a substantial improvement on April’s 0.6% slip.