National Bank of Poland cites global economy, domestic slowdown in holding rates steady, minutes report

By Richard Connell

New York, Nov. 20 - The National Bank of Poland's Monetary Policy Council left its key interest rates unchanged at its Oct. 29 meeting, according to minutes released Thursday.

Council members focused on the ongoing international financial crisis and its continued negative effect on the Polish economy.

Attention was also given to the strong slowdown in economic activity in the euro area, which has caused a decline in demand for Polish exports, concluding that the situation would lead to lower GDP growth in the coming quarters.

While some members of the council argued that inflation would continue above the target despite the decline in economic growth, others claimed that the decline in GDP growth combined with limited credit availability might bring inflation below the target level.

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

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