WARSAW: Poland kept its key interest rate unchanged at a record low as inflation continues to remain negative. The Monetary Policy Council of the National Bank of Poland on Wednesday decided to retain the key reference rate at a record low 1.50 percent.
The decision was in line with economists’ expectations. Previously, the bank lowered the rate by 50 basis points in March last year. The lombard rate was maintained at 2.50 percent and the deposit rate at 0.50 percent. The rediscount rate was kept at 1.75 percent.
William Jackson at Capital Economics, said the economy will continue to perform well both this year and next and, accordingly, no additional easing over the forecast horizon is expected.
With price pressures set to remain subdued, any move towards tightening is likely to be a long way off, he added. The economist expects the policy rate to stay unchanged at 1.5 percent both this year and next. Consumer prices fell 0.8 percent year-on-year in February after declining 0.9 percent in January. The central bank targets a price growth of 2.5 percent.
