Polish MPC keeps rates flat, still sees them unchanged at least till mid-2014

By bne IntelliNews January 9, 2014

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).

It also retained the wording of the key sentence of its press release virtually unchanged as compared to the December version - it now reads: "The Council maintains its assessment that NBP interest rates should be kept unchanged at least until the end of the first half of 2014."

Governor of the National Bank of Poland (NBP) and MPC chairman Marek Belka admitted that hardly anything changed in Poland's economic situation since MPC's previous sitting. In fact, the Council now expects slightly faster economic growth and slightly lower inflation, he added. All in all, there are no risks on the horizon that would necessitate a change of monetary policy, the central banker concluded.

Bank economists now expect interest rates to remain flat for at least till September of 2014, but some of them point to the turn of the year as the beginning of the policy tightening cycle. 

Related Articles

EU top court rules Poland broke law by logging in ancient forest

Poland broke EU law by increasing logging in the ancient Bialowieza Forest under a pretext of fighting spruce beetle, the Court of Justice of the European Union (CJEU) ruled on April 17. The ... more

S&P raises Poland’s outlook to positive on rosy prospects of economy in 2018

Standard and Poor’s raised its outlook for Poland from stable to positive on April 13, while maintaining the country’s rating at BBB+.  The raising of the outlook is based on ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more