Wednesday, March 7, 2012

National Bank of Poland Keeps Rate on Hold at 4.50%

The Narodowy Bank Polski's Monetary Policy Council maintained its benchmark 7-day interest rate on hold at 4.50%.  The Bank said: "The Council decided to keep the NBP interest rates unchanged. The Council does not rule out the possibility of further monetary policy adjustments in the future, should the positive signs of economic activity in Poland continue and the outlook for inflation returning to the target fail to improve."

The Bank also kept the following interest rates unchanged: 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 last year, and held the interest rate unchanged at its previous meeting.  

Poland reported annual headline inflation of 4.1% in January, 4.6% in December, 3.9% in September, compared to 4.3% in August, 4.1% in July, with previous readings of 4.2% in June, 5% in May, 4.5% in April, 4.3% in March, and just higher than the Bank's official inflation target of 2.5% +/- 1%.  

The Polish Zloty (PLN) has weakened by about 11% against the US dollar over the past year; the USDPLN exchange rate last traded around 3.17.  The National Bank of Poland next meets on the 4th of April 2012.


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