Poland holds rate at 1½% amid continued global economic recovery

By Tali Rackner

Minneapolis, April 11 – The National Bank of Poland’s monetary policy council decided to maintain its reference rate at 1½% at the meeting held Tuesday and Wednesday.

In addition, the Lombard rate remains at 2½%, the deposit rate at ½% and the rediscount rate at 1¾%.

“Despite the ongoing global recovery, inflation abroad remains moderate on the back of the persistently low domestic inflationary pressure across many countries,” the council said in a statement.

“In addition, agricultural commodity prices are still lower than a year ago, whereas oil prices have recently slightly increased.”

In Poland, the annual GDP growth in the first quarter was similar to that recorded in the fourth quarter of last year.

Despite the relatively high GDP growth and wages rising faster than last year, consumer price growth decreased recently, accompanied by low inflation net of food and energy prices.

The European Central Bank is holding interest rates near zero, including the deposit rate below zero, while still purchasing financial assets. Meanwhile, the U.S. Federal Reserve increased interest rates in March and continues to gradually reduce its balance sheet, according to the statement.

The bank said inflation is expected to stay close to the target level amid a favorable economic outlook for economic growth in Poland.

“As a result, the council judges that the current level of interest rates is conducive to keeping the Polish economy on a sustainable growth path and maintaining macroeconomic stability,” the release added.

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