National Bank of Poland

June 3, 2014

The central bank’s seven-day reference rate has been at 2.5% since a 25-basis point cut in July 2013 culminated a 225-bp easing cycle that had begun in November 2012.  Officials do not expect this record low level to be changed before this year’s final quarter.  That’s the conclusion of the policy committee’s latest statement.

In the opinion of the Council, gradual economic recovery is likely to continue in the coming quarters, while inflationary pressure will remain very low. The Council decided
to keep NBP interest rates unchanged. The Council maintains its assessment that NBP interest rates should be kept unchanged until the end of the third quarter of 2014. More
comprehensive assessment of monetary policy perspectives and potential adjustment of interest rates will be possible after the Council gets acquainted with incoming
information, including the July NBP projection.

The statement notes the big gap between current inflation of 0.3% and the target of 2%.

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



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