Wednesday, April 10, 2013

Poland holds rate at 3.25%, press conference later today

  Poland's central bank held its policy rate steady at 3.25 percent, as expected by most economists, and said it would explain its decision at a press conference later today.
    The National Bank of Poland (NBP), which has cut rates by 100 basis points this year following a reduction of 50 basis points in 2012, signaled last month that it was getting close to ending its rate easing cycle as moderate economic growth would help contain inflation.
    In February, Poland's inflation rate tumbled to 1.3 percent in February from 1.7 percent in January, the lowest rate since early 2006. The NBP targets inflation of 2.5 percent target, plus/minus one percentage point.
    Financial markets are expecting the NBP to cut rates further in the next few months as economic data continue to weaken.
    Retail sales rose in February from January but on an annual basis they were down 0.8 percent while the February unemployment rate rose to six-year high of 14.4 percent.
    Poland's Gross Domestic Product grew by 0.2 percent in the fourth quarter from the third quarter for annual growth of 1.1 percent 


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