National Bank of Poland’s Reference Interest Rate Left at 1.5%

March 8, 2017

A released statement following the Monetary Council’s meeting on March 7-8 asserts that a recent considerable rise of total CPI inflation reflects things that are beyond the control of monetary policy. Core inflation is still around zero, implying scant demand pressure and only moderate growth in unit labor costs. The monetary authorities consequently believe that ” the risk of inflation running persistently above the target in the medium term is limited.” New forecast ranges were unveiled. They see consumer prices rising 1.6-2.5% this year, 0.9-2.9% in 2018 and 1.2-3.5% in 2019 and real GDP expanding by 3.4-4.0% this year, 2.4-4.5% next year and 2.3-4.4% in 2019.

From November 2012 to July, eight central bank interest rate cuts were undertaken, cut such by 225 basis points to 2.5%. There have been two subsequent 50-basis point cuts, first in October 2014 and later in March 2015.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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