Poland raises interest rates again to curb inflation

At a session held on Tuesday (Feb.8) the Monetary Policy Council decided to increase the NBP interest rates by 0.50 percentage points.

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

reference rate at 2.75% on an annual basis;

lombard rate at 3.25% on an annual basis;

deposit rate at 2.25% on an annual basis;

rediscount rate at 2.80% on an annual basis;

discount rate on bills of exchange at 2.85% on an annual basis;

The resolution of the Monetary Policy Council shall enter into force on 9 February 2022.

The Council said in a press release after the session on Tuesday that "in a longer perspective, inflation will decrease, which will be supported by expected fading of some global shocks currently boosting price growth, as well as by an increase in the NBP interest rates".

"At the same time, amidst further economic recovery and expected continuation of favourable labour market conditions, as well as probably more lasting impact of external shocks on price dynamics, there persists a risk of inflation running above the NBP inflation target in the monetary policy transmission horizon," the RPP added.

"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.