Poland: Central Bank keeps rates unchanged amid slowing GDP growth
September 5, 2012
At its 4-5 September monetary policy meeting, the National Bank of Poland (NBP) left its reference rate unchanged at 4.75%, a decision that was in line with market expectations. The Central Bank stated that global economic activity is weak, reflecting the stagnation in the Euro area as well moderate growth in the United States. On the domestic side, the Bank stressed that economic growth is slowing, which has been confirmed by the disappointing GDP figures in Q2. Regarding price developments, the Central Bank stated that "inflation will decrease gradually over the coming months, as the statistical base effect wanes amidst slowing demand in the economy". Inflation eased in July but remains above the Central Bank's target of 2.5% with a tolerance margin of plus/minus 1.0 percentage points.