Money in Poland
Poland - Money
Central Bank stands pat in November
At its 9 November meeting, the National Bank of Poland (NBP) kept the key reference rate unchanged at 6.75%. The NBP also kept the Lombard rate unchanged at 7.25%, the rediscount rate at 6.80% and the deposit rate at 6.20%.
The NBP decided to stand pat again as it reiterated that previous rate hikes were already limiting demand growth, while tightening cycles abroad will limit imported inflation. That said, inflation climbed further to an over 26-year high of 17.9% in October (September: 17.2%) on pass-through of high commodity prices for energy and food costs, partly due to the war in Ukraine. The Central Bank expects the same factors to keep price pressures elevated in the coming quarters. That said, higher interest rates, the fading impact of current shocks and the appreciation of the zloty should contribute to a gradual decrease in inflation.
In its communiqué, the NBP stated that its decisions will remain driven by data and by the impact of the ongoing war in Ukraine on the Polish economy. Therefore, the Bank avoided giving specific forward-looking guidance.
Commenting on the Bank’s decision, Adam Antoniak and Rafal Benecki, economists at ING, stated:
“The post-meeting statement indicates that the NBP rather targets a reversal of the inflation trend and wants to facilitate a soft landing for the economy rather than bring inflation down to 2.5% as quickly as possible. Such a strategy raises the risk of perpetuating high inflation expectations, and this could entail higher costs of containing CPI in the future.”
The next monetary meeting is scheduled for 29 November.
FocusEconomics Consensus Forecast panelists are still assessing the latest developments and new forecasts will be released on 7 December.
Poland - Money Data
|Money (annual variation in %)||9.6||9.7||4.5||8.8||8.7|
5 years of economic forecasts for more than 30 economic indicators.
Poland Money Chart
Source: National Bank of Poland.
|Bond Yield||2.07||-0.30 %||Dec 31|
|Exchange Rate||3.79||-0.53 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
November 25, 2022
Business confidence rose to minus 20.6 in November from October's minus 21.1, which had marked the worst reading since May 2020.
November 24, 2022
Retail sales grew 18.3% in year-on-year terms in October, which followed September's 21.9% increase.
November 24, 2022
Industrial output grew 6.8% compared to the same month a year earlier in October, which was a deterioration from September's 9.8% increase.
November 16, 2022
According to a flash release, GDP growth decelerated to 3.5% year on year (yoy) in the third quarter, from 5.8% in Q2.
November 9, 2022
At its 9 November meeting, the National Bank of Poland (NBP) kept the key reference rate unchanged at 6.75%.