National Bank of Poland opts to leave reference rate unchanged at 3½%

By Richard Connell

New York, Aug. 26 - The Monetary Council of the National Bank of Poland left its reference rate at 3½% at its meeting on Wednesday, according to a news release issued by the bank.

The council examined data which showed an easing of the recession in both the United Sates and the E.U. countries but warned that it was difficult to assess the speed and permanence of the recovery.

The council also noted that economic activity in Poland remained subdued, reflected in a decline in industrial output, higher unemployment and reduced lending in the corporate sector.

CPI inflation rose in July to 3.6%, above both the inflation target of 2.5% and the upper limit for deviation of 3.5%, due primarily to higher tobacco and fuel prices.

The council forecast that inflation would remain elevated in the coming months, but assessed that it should run below the target level in the medium term due to low demand pressure.

The reference rate remains at 3½%, the Lombard rate at 5%, the deposit rate at 2% and the rediscount rate at 3¾%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.