The Monetary Police Council announced on Wednesday (Dec.6) it has decided during December's session to keep the NBP interest rates unchanged. Therefore, the main reference rate has been kept at 5.75%.
The December session of Poland's Monerary Policy Council (MPC) came to an end on Wednesday. Economic experts surveyed ahead of this month's MPC meeting expected the Council would not make any corrections to the NBP interest rates.
As expected, the Monetary Policy Council decided to keep the NBP interest rates unchanged:
- reference rate at 5.75% on an annual basis;
- lombard rate at 6.25% on an annual basis;
- deposit rate at 5.25% on an annual basis;
- rediscount rate at 5.80% on an annual basis;
- discount rate on bills of exchange at 5.85% on an annual basis.
MPC: decrease in inflation is supported by the appreciation of the zloty exchange rate
As usual, the Monetary Policy Council released a statement following the decision regarding the interest rates.
"According to the Statistics Poland flash estimate, annual CPI inflation in November 2023 stood at 6.5% (compared to 6.6% in October 2023). Considering the Statistics Poland data, it can be estimated that the decrease in inflation in annual terms was driven mainly by a fall in core inflation, as well as – albeit to a lesser extent – by a drop in annual price growth of food and non-alcoholic beverages," the MPC said.
"However, an increase in annual price growth of energy had the opposite effect on annual inflation. In October 2023, producer prices were considerably lower than a year ago, which confirms the fading of most external supply shocks and a reduction of cost pressures. Together with the low economic activity growth, it will support a further decline in consumer price inflation in the coming quarters," it added.
"The Council judges that the decrease in inflation is supported by the appreciation of the zloty exchange rate, which is consistent with the fundamentals of the Polish economy."
MPC: interest rates level to help meet inflation target
The MPC also assessed that "incoming data indicate low demand and cost pressures in the Polish economy, which amidst weakened economic conditions and falling inflation pressure abroad will support a gradual decline in domestic inflation".
"Considering the adjustment in the NBP interest rates introduced in previous months, together with uncertainty about a future course of fiscal and regulatory policies and their impact on inflation, the Council decided to keep the NBP interest rates unchanged," we read.
"The Council judges that the current level of the NBP interest rates is conducive to meeting the NBP inflation target in the medium term."
Źródło: TVN24 News in English, TVN24 Biznes, nbp.pl