Wednesday, July 6, 2011

Poland Central Bank Holds Interest Rate at 4.50%

The Narodowy Bank Polski's Monetary Policy Council maintained its benchmark 7-day interest rate unchanged at 4.50%.  The Bank said: "In the coming months, the annual CPI inflation rate will continue at an elevated level, mainly due to the strong growth in global commodity prices observed prior to the inflation increase."  The Bank also noted that it would "not rule out a further adjustment of monetary policy, should the outlook fro inflation's return to the target deteriorate".

The Bank also held unchanged the following rates: the rediscount rate at 4.75%, the Lombard rate at 6.00%, and the deposit rate at 3.00%.  The Bank last raised the interest rate by 25 basis points to 4.50% in June this year.  Poland reported inflation of 5% in May, up from 4.5% in April, 4.3% in March, and higher than the Bank's official inflation target of 2.5% +/- 1%. 


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