Poland Monetary Policy


Poland: Central Bank leaves rate unchanged at historic low

June 3, 2014

The National Bank of Poland (NBP) kept its reference rate unchanged at 2.50% at its 2–3 June monetary policy meeting. The decision was in line with market expectations and marked the 11th consecutive meeting in which no change was made. Keeping interest rates at the current low level is said to support ongoing domestic economic growth and the return of inflation to the established target.

The Bank noted that the global economy continues to grow at a moderate pace and pointed out that conditions are improving in the U.S. after a contraction in Q1, while recovery in the Euro area has been weak. In terms of the domestic economy, the Bank emphasized the acceleration to 3.4% growth registered in Q1. Moreover, while data from April was somewhat mixed, there is evidence that positive momentum has carried over into Q2. Meanwhile, although the recovery is driving continued improvements in the labor market, unemployment remains elevated and is restricting wage pressures in the economy.

Regarding price developments, the Bank stated that inflation continues at well below the target of 2.5% plus/minus 1.0 percentage points. Moreover, the Bank explained that, even though, “gradual economic recovery is likely to continue in the coming quarters, inflationary pressure will remain very low.” As a result, the Bank decided to keep interest rates unchanged. Moreover, it reiterated that the period during which rates should be kept unchanged is, “at least until the end of the third quarter of 2014.” Finally, the Bank noted that there is the possibility for an adjustment of rates after it assesses new incoming information, including its own updated macroeconomic projections.

For 2014, panelists expect the policy rate to end the year at 2.56%. For 2015, the panel sees the rate ending the year at 3.52%.

Author:, Economist

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Poland Monetary Policy Chart

Poland Monetary Policy June 2014 0

Note: NBP Reference Rate in %.
Source: National Bank of Poland.

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