Beam: MPC did not rule out further monetary policy adjustment – Virtual Poland

Beam: MPC did not rule out further monetary policy adjustment – Virtual Poland

The Monetary Policy Council decided to keep interest rates at the same level, but if you lengthen the expected period of deflation and thus increase the risk of inflation to remain below the target in the medium term is “the Council does not rule out further monetary policy adjustment” – results from published on Wednesday MPC statement read out by the President of the National Bank of Poland Marek Belka.

“The Council decided to keep the NBP interest rates unchanged. The Council underlines that in the environment of the Polish economy is still uncertainty as to the future economic situation. If you lengthen the expected period of deflation and thus increase the risk of inflation to remain below the target in the medium term, and incoming data will be confirmed slowdown in economic activity and maintain a low growth environment of the Polish economy, the Council does not rule out further monetary policy adjustment “- rea ds, released after a two-day meeting.

The Monetary Policy Council meeting on Wednesday left interest rates unchanged. On an annual basis NBP reference rate will continue to be 2.00 per cent., The lombard rate at 3.00 per cent., The deposit of 1.00 per cent., While the rediscount rate of 2.25 percent.

In its Communication Council also indicates the cause of low inflation. Pointed out that “the increase in global economic activity remains moderate,” and also in the last month, still strongly decreased the price of oil. “

” With moderate economic growth in the world is conducive to maintaining a very low inflation in many countries, and has contributed to the occurrence of deflation in the euro area “- reads.

On the other hand,” the major central banks continue to expansive monetary policy, keeping interest rates at historically low levels. “

However, in Poland “labor market data point to a further increase in employment in enterprises, which contributes to the continuation of the decline in unemployment seasonally adjusted”. “At the same time sustained moderate wage growth in the enterprise sector indicates that wage pressure remains limited” – says the message.

In response to a question at a press conference Belka admitted that “prolonged deflation can be an important factor that the Council will proceed to action”. He noted, however, that the MPC “pursues the inflation target in a flexible manner.”

“I do not rule out further monetary policy adjustment,” – he said. “This adaptation is still possible, but there is no reason to hurry up with this” – he added.

Member of the Board Jan Winiecki added that no one, neither the MPC or, for example. The European Central Bank “does not have a key to sesame,” which would allow for the opening of a return to the inflation target. (PAP)

PS / drag /