National Bank of Poland Leaves Key Interest Rate at 4.75%

June 6, 2012

Unlike at the prior meeting in May, Polish monetary policymakers did not spring an unexpected reference interest rate hike on the market today.  That move had been the first increase in 11 months.  There were four increases in all during the first half of 2011, each 25 basis points in magnitude.  The reference rate stands at 4.75%, less than a percentage point higher than CPI inflation of 4.0%.  According to a statement from officials, both total and core CPI inflation were higher in April than in March, and the rise in total consumer prices from a year earlier exceeds the inflation target of 2.5%.  The statement blames zloty depreciation and higher administered prices for the inflation overshoot but expects inflation to settle back eventually amid soft aggregate demand.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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