National Bank of Poland

April 9, 2014

Poland’s seven-day repo rate should stay at a record low of 2.5% “. at least until the end of the third quarter of 2014,” according to a released statement following Narodowy Bank’s policy meeting.  It has been at 2.5% since a 25-basis point cut in July 2013.  That cut culminated a series of 7 reductions of 25 bps and one of 50 basis points between November 2011 and July 2013.  The statement observes a continuing gradual economic recovery but also excessively low inflation.  The CPI on-year 0.7% rate is way below its 2.5% target.  Expected inflation and core CPI are also low, and the PPI is falling.  Moreover, high unemployment is constraining wage increases, and bank lending is weaker than the Monetary Policy Council members desire.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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