National Bank of Poland sees continued economic slowdown, holds interest rates steady

By Richard Connell

New York, Oct. 29 - The Monetary Policy Council of the National Bank of Poland held interest rates unchanged at its meeting on Tuesday and Wednesday, according to a press release.

The council held the reference rate at 6%, the Lombard rate at 7.5%, the deposit rate at 4.5% and the rediscount rate at 6.25%.

Supporting its decision, the council cited data indicating that economic growth in Poland will continue to decrease in the coming quarters, based on the ongoing turmoil in the international financial markets and limited credit availability.

The council also pointed out that inflationary pressures were being decreased by the decline in both food and commodity prices.

In September, the council said that the annual growth of consumer prices in Poland declined to 4.5%, remaining above the National Bank of Poland's inflation target of 2.5% and also above the upper limit for deviations from the target set at 3.5%.

For the medium term, the council concluded that the easing of inflationary pressures would continue to be supported by both the global and domestic economic slowdown.

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