Poland: Key Interest Rate to Remain Unchanged

Poland: Key Interest Rate to Remain Unchanged / Picture: © Polish National Bank NBP

In its January rate-setting meeting, the Polish Monetary Policy Council decided to remain the country’s key interest rate unchanged at 2.5 percent in a fourth consecutive month, as announced by NBP on Wednesday. According to the most recent policy statement, the Polish rate council maintained its assumption that interest rates will remain unchanged until at least mid-2014 since economic growth has been steady and the risk of inflation low. The country’s economy is expected to accelerate growth to 2.8 percent this year, according to economists at the World Bank. The previous forecast for 2014 only anticipated growth of 2.0 percent.

Poland´s new Finance Minister Mateusz Szczurek considers the growth estimations for 2014 may to be too cautious. In the 2014 budget bill, Poland´s anticipated growth comes at 2.5 percent. According to Szczurek, Poland´s economy performs well. Although the budget is rather difficult, the Polish economy can beat the forecast, he added. However, the 2014 is safer than the prior budget, Szczurek pointed out.

Belka, governor of the National Bank of Poland, stressed that the country is not prone to risk of changes in the monetary policy for the time being. However, he did not comment on whether or not an extension for keeping the interest rates at the same level until after the mid-year was likely. Instead, he referred to the next inflation projection which could grant more insight.