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Poland maintains reference rate at 1½% as growth remains ‘moderate’
By Wendy Van Sickle
Columbus, Ohio, Nov. 9 – National Bank of Poland’s Monetary Policy Council voted to hold the reference rate unchanged at 1½% at its meeting held Tuesday to Wednesday.
“Global economic growth remains moderate with uncertainty about its outlook,” according to a bank notice.
Amid moderate global economic growth and lower commodity prices than in past years, price growth in Poland is still very low, the bank said, although annual price growth in commodity prices has been positive, leading to slightly higher inflation in some economies.
While stable economic growth in Poland has continued, current data indicate that it may have fallen slightly in the third quarter with the main driver being rising consumer demand, supported by gradual improvement in the labor market, favorable household sentiment and child benefit payments.
Annual growth in prices of consumer goods and services has remained negative, the bank said, but deflation is gradually subsiding.
In the council’s opinion, price growth will continue a gradual increase and turn positive in the coming quarters.
“Besides waned effects of the earlier falls in commodity prices, price growth in 2017 will be driven by an expected acceleration in GDP growth amid a further rise in wage growth and higher child benefits,” the bank notice states.
“In the coming quarters, the investment growth rate should also rise, supported by the good financial standing of enterprises and their high capacity utilization, as well as the gradual increase in the absorption of E.U. funds.”
The council also kept the Lombard rate at 2½%, the deposit rate at ½% and the rediscount rate at 1¾%.
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