Key Polish Central Bank Rate Left at 1.5%

June 8, 2016

The National Bank of Poland’s reference rate has been at 1.5% since cuts of 50 basis points each in January and March of 2015.  Previously, 225 basis points of easing were administered between November 2012 and July 2013.  A statement released after the latest meeting of the Monetary Policy Council observes that “with a negative output gap and moderate growth of average nominal wages, currently there is no inflationary pressure in the economy.”  Inflation expectations are also very low.  “At the same time, GDP growth is expected to remain stable in the coming quarters, following a temporary deceleration early this year.”  Major uncertainties that officials continue to watch include “the downside risks to the global economic conditions and the volatility of commodity prices.”

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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