Poland: Central Bank maintains rates unchanged as expected
October 2, 2013
At its 1-2 October monetary policy meeting, the National Bank of Poland (NBP) kept its reference rate unchanged at 2.50% for the third consecutive month, a decision that matched market expectations. This decision coincides with the announcement the Bank made during its July meeting in which it confirmed the end of the monetary policy loosening cycle that had begun in November. The Bank noted that despite recent improvements in some indicators, "economic growth has remained relatively weak." Regarding price developments, the NBP indicated that inflation remained at July's 1.1% in August, and is therefore well below the target of 2.5% plus/minus 1.0 percentage point. Given the low inflationary pressures and a moderate economic recovery, the Bank plans to keep interest rates unchanged, "at least until the end of 2013." FocusEconomics Consensus Forecast panelists expect the NBP reference rate to end this year at 2.49%. For 2014, panelists expect the policy rate to end the year at 3.01%.
Author: Carl Kelly, Economist