Polish 3.5% Central Bank Reference Rate Left Unchanged

January 26, 2010

Narodowy Bank’s interest rates has been at 3.5% since mid-2009 and will remain at that level.  As with other central bank rate announcements today, this was the expected outcome.  Growth is improving, and CPI inflation of 3.5% in the year to December is at the upper end of the central bank’s 1.5 – 3.5% target corridor and likely to stay within that boundary.  Poland has positive on-year growth.  Real GDP in 3Q was 1.7% greater than a year earlier.  The central bank administered 250 basis points of monetary relief in six rate cuts: 25 bps in November 2008 followed by reductions of 75 bps each in December 2008 and January 2009, 25 bps in February, 25 bps in March and one final move of 25 bps last June.  The central bank’s new statement can be found by clicking here.

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.



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