National Bank of Poland

November 4, 2015

Poland still has negative CPI and PPI inflation.  The key central bank policy interest rate of 1.5%, lowest in nearly 5-1/2 years, was cut eight times by a total of 225 basis points between November 2012 and September 2013 to 2.5% and then lowered by another 50 bps in January 2014 and, most recently, 50 bps again this past March to a 69-month low.  After leaving the 7-day reference rate at 1.5% today, the Monetary Policy Council released a statement highlights continuing downside risks to global growth and inflation but retains a baseline forecast of gradually rising Polish inflation based upon “the gradual closing of the output gap amid improving economic conditions in the euro area and favorable domestic labor market developments.”  This was the first central bank meeting since the recent Polish election.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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