Poland: Central Bank leaves interest rates unchanged
March 7, 2012
At its 6-7 March monetary policy meeting, the Central Bank left interest rates unchanged at 4.50% for the ninth consecutive month, in a move that was widely expected by the market. The National Bank of Poland (NBP) stated that global economic growth remains subdued, and is now accompanied by a recession in the Euro area and prevailing uncertainty regarding the sovereign debt crisis in some Eurozone countries. However, the Bank pointed out that the domestic economy had posted solid GDP growth in the fourth quarter of 2011, although it warned that ?economic activity may weaken in the coming quarters.? In addition, the Central bank maintained its view that ?in the medium term, inflation will be curbed by the expected deceleration of economic growth amid moderate wage growth as well as continued fiscal tightening.?