Poland Monetary Policy


Poland: Central Bank cuts policy rate by 25 basis points in June

June 5, 2013

At its 4-5 June monetary policy meeting, the National Bank of Poland (NBP) lowered its reference rate by 25 basis points to a record low of 2.75%, in a decision that was in line with market expectations. Overall, since the beginning of the easing cycle in November last year, the NBP has cut an accumulated 200 basis points off the reference rate.

The Central Bank reiterated that global economic activity remains weak amid a recession in the Euro area as well as slowing growth in China. On the domestic side, the Bank stated that economic growth has been weaker than expected at the outset of the year amid declining domestic demand. Regarding price developments, the Central Bank indicated that there are "persistently low demand and cost pressure in the economy". Indeed, inflation fell to 0.8% in April, which is well below the Central Bank's target of 2.5% plus/minus 1.0 percentage point.

Finally, the NBP concluded that the "monetary policy easing conducted since November 2012 supports economic recovery and limits the risk of inflation running below the NBP target in the medium term".

FocusEconomics Consensus Forecast panellists expect the NBP reference rate to end this year at 2.79%. For 2014, panellists expect the policy rate to end the year at 3.26%.


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Poland Monetary Policy Chart

Poland Monetary Policy June 2013

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

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