Poland keeps interest rates at 1.5% as inflation stays moderate

New York, July 5 – The National Bank of Poland’s monetary policy council kept interest rates unchanged at its meeting held on July 4 and July 5.

In a statement, the bank said that it expects inflation “will remain moderate.”

The bank’s reference rate remains at 1.5% and its Lombard rate stays at 2.5%. The deposit rate is unchanged at 0.5% as is rediscount rate at 1.75%.

Globally, the bank said inflation remains moderate despite a continuing recovery as the effects of earlier increases in commodity prices fade and oil prices remain stable. Many countries, it added, have low domestic inflationary pressure.

Data for Poland points towards stable growth in the gross domestic product for the second quarter of this year.

The bank said domestic growth continues to be driven primarily by increasing consumer demand, supported by rising wages and employment, disbursement of benefits and strong consumer sentiment.

Trends in the corporate sector are also expected to remain favorable.

Core inflation, although “gradually increasing, is still low,” the bank said.

Given available data, it added, “the current level of interest rates is conducive to keeping the Polish economy on the sustainable growth path and maintaining macroeconomic balance.”

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