Polish MPC keeps rates flat, sees them unchanged at least by middle of 2014

By bne IntelliNews November 7, 2013

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.

Related Articles

Poland rescinds TVN’s fine

Poland’s National Broadcasting Council (KRRiT) has cancelled on January 10 its own decision to fine the US-owned media group TVN PLN1.48mn (€350,000) for covering protests against ... more

Poland’s PKN Orlen launches offer to delist Czechia’s Unipetrol

Poland’s state-controlled oil and gas company PKN Orlen has launched an offer to take over Czech refiner Unipetrol, the Polish company said on December 13. PKN Orlen said it will go through with ... more

Poland passes partial ban on Sunday retailing

The Polish parliament on November 24 passed a bill that bans retailing on the first and last Sunday of each month. The passing of the law – which still has to be reviewed by the Senate and ... more