3.5% Policy Central Bank Rate in Poland Retained As Expected

November 27, 2009

Narodowy Bank Polski left its benchmark interest rate at 3.5%, matching the decisions it made at meetings in July, August, September and October.  Previously, a total decline of 250 basis points from 6.0% was engineered via decreases of 25 basis points last November, then 75 bps each in December and January followed by three more 25-bp cuts in February, May and June.  A statement from the central bank said core inflation has not declined as much as hoped thus far, expressed the view that inflation will trend lower in the future, and cited continuing problems in the labor market and bank lending.  The latest total 12-month rate of CPI inflation was 3.1%. No near-term change in interest rates seems likely.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.

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