Poland: Key Rate to Remain Low

Politics ♦ Published: October 24, 2013; 19:30 ♦ (Vindobona)

In order to support the positive growth trend, the Polish National Bank (NBP) will keep the key rate flat next year. Poland´s economic growth is mainly based on foreign demand, though.

Poland: Key Rate to Remain Low / Picture: © Vindobona.org

At the moment, Poland´s key rate stands at 2.50%. In Poland´s history, this is a record low. Between November 2012 and July 2013, the key rate was cut by 225 bps. Due to the fragile economic growth, NBP will hold the interest rate at its record low next year, economists say. What is more, there is no pressure from inflation, NBP´s governor Marek Belka said.

In the first…