Central Bank of Poland

April 15, 2015

Having cut the reference interest rate by 50 basis points to 1.50% at the prior meeting on March 4, Poland’s Monetary Council elected not to ease further at today’s meeting.  The March action was the first one since January 2014, when it was also reduced by 50 basis points.  Since November, the rate has been cut 325 basis points in ten increments from a prior 4.75% level.  A statement released today projects continuing deflation just ahead because of moderate growth in GDP, modest wage increases, and low commodity prices.  However, “the adjustment of monetary policy in March – with continuing stable economic growth, an expected recovery in the euro area and good situation in the domestic labor market – reduce the risk of inflation remaining below the target in the medium term. Therefore, the Council decided to keep NBP interest rates unchanged.”

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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