National Bank of Poland

January 14, 2016

Poland’s central bank reference rate will remain at 1.50%, its level since a 50-basis point cut last March.  From November 2012 until then, three cuts of 50 basis points and seven reductions of 25 bps were implemented.  A statement released after today’s meeting has a generally upbeat tone, suggesting that the key rate will likely stay at 1.5% for some time longer.  “Demand growth is supported by robust labor market, optimistic consumer sentiment and good financial condition of enterprises. However, demand growth is curbed by enterprises’ uncertainty about the outlook for economic growth abroad… In the opinion of the Council, consumer price growth will slowly increase in the nearest quarters, yet due to renewed decline in commodity prices, consumer price growth may be lower than anticipated. So far, the continuing deflation has not had a negative impact on the decisions of economic agents.”

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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