The Monetary Policy Council (MPC) has decided to keep interest rates unchanged, which is a decision in line with the expectations of all bank economists. Thus, the key reference rate is still 2.50% (after the July 25bps cut).
However, MPC changed the wording of the key paragraph of its communique to read: "The Council assesses that NBP interest rates should be kept unchanged at least until the end of the first half of 2014," while in the previous few months, it pointed to the end of this year in this statement.
Governor of the National Bank of Poland (NBP) and MPC chairman Marek Belka stressed that all MPC member agreed with the wording of this sentence.
According to the Council, lowering interest rates in H1 of 2013 and keeping them unchanged in the second half of the year supports recovery of the domestic economy, gradual return of inflation to the target and stabilisation in the financial markets. The current statistical data as well as the projection of GDP and inflation that confirm low inflationary pressure and the expected moderate economic recovery, MPC's release concludes.
After the decision's announcement, bank economists stuck to their expectations that interest rates will be raised probably only in September or Q4 of 2014.
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