National Bank of Poland

National Bank of Poland

May 17, 2017

Prior to November 2012, the Polish central bank reference interest rate had been 4.75%. 2.25 percentage points of monetary easing were implemented by July 2013, and two cuts of 50 basis points each in the first quarter of 2015 reduced the key rate to a record low of 1.5% where it has remained for the past 26 months. At the latest meeting, officials agreed to keep the interest rate at 1.5%, along with a lombard rate of 2.5% and a rediscount rate of 1.75%.

Polish growth remains ample, but inflation is still quite subdued. Real GDP climbed 1.0% last quarter and 4.1% over the past four quarters versus 2.8% in the year through the first quarter of 2016. CPI inflation has slipped to 2.0%, less than the 2.5% target.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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