Poland: Central Bank leaves rates on hold
March 2, 2011
At its latest monetary policy meeting held on 1-2 March, the Central Bank decided to leave interest rates unchanged at 3.75%. The Central Bank stood pat after lifting rates by 25 basis points at its previous meeting in January. The decision was largely expected by market analysts. Inflation accelerated to 3.8% in January and thus exceeded the 1.0 percentage point tolerance margin around the Central Bank's 2.5% target. Nevertheless, monetary authorities decided to leave rates unchanged, stating that increasing unemployment and relatively moderate wage growth do not exert enough upward pressure to push inflation above the Bank's inflation target in the medium term.