Monetary Police Council raises interest rates by 0.75 pp

At a meeting on 5 May 2022, the Monetary Policy Council decided to increase the NBP interest rates by 0.75 percentage points.

"The Council assessed, that there persists a risk of inflation running above the NBP inflation target in the monetary policy transmission horizon. In order to reduce this risk, i.e. striving to decrease inflation to the NBP target in the medium term, the Council decided to increase NBP interest rates again. The increase of the NBP interest rates will also curb inflation expectations," we read in a statement released by the Council on Thursday afternoon.

"Inflation in Poland – according to Statistics Poland flash estimate – increased in April 2022 to 12.3% which was mainly driven by a strong growth in the food prices due to a rise in global agricultural commodity prices amid Russian military aggression against Ukraine," reads the statement.

The Council set the NBP interest rates at the following levels:

reference rate at 5.25% on an annual basis;

lombard rate at 5.75% on an annual basis;

deposit rate at 4.75% on an annual basis;

rediscount rate at 5.30% on an annual basis;

discount rate on bills of exchange at 5.35% on an annual basis;

The resolution of the Monetary Policy Council shall enter into force on 6 May 2022.