Polish Central Bank Left Key Reference Rate at 3.5%

October 28, 2009

The Narodowy Bank did not change its key and record-low seven-day repo rate of 3.5%.  A similar decision was made after meetings in late September, late August, and late July.  Previously, reductions were announced of 25 basis points on November 26, 75 bps each on December 23 and January 27, and 25 bps on January 27, February 25, May 25, and June 24.  A statement released by authorities revised projected growth in 2010 and 2011 downward and revised projected growth in 2010 upward but in 2011 downward.  Statistics covering industrial output, retail sales, construction and confidence are improving, but the labor market has deteriorated.  The zloty, which depreciated sharply last autumn, is presently somewhat more than 5% stronger against the dollar than a year ago.  In year-over-year comparisons, consumer prices rose 3.4% in September, real GDP advanced 1.1% in 2Q09, but industrial production fell 1.3% in September.  The central bank decision, which also included an unchanged discount, Lombard, and deposit rate, matched street expectations.

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


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