MPC did not change interest per cent., Still promises the possibility of cuts – Virtual Poland

MPC did not change interest per cent., Still promises the possibility of cuts – Virtual Poland

Warsaw, 04.02.2015 (ISBnews) – The Monetary Policy Council (MPC) today kept interest rates at unchanged levels with the main reference rate of 2.0% (in line with the expectations of most analysts), the central bank said . Council’s statement emphasizes that does not exclude cash policy adjustment in the near term.

“Given the increased volatility in the financial markets in recent years, the Council decided to keep interest rates unchanged. However, the Council does not exclude the adaptation of monetary policy in the near term, if you lengthen the expected period of deflation and thus increase the risk of inflation remaining below the target in the medium term. A more comprehensive assessment of the outlook for inflation returning to the target will be possible, having regard to the incoming information, including the March projection NBP “- is the key sentence in today’s press release.

In December consumer price in dex was lower than expected, dropping to 1.0% y / y. This was accompanied by a further decline in most measures of core inflation, which confirms the lack of demand pressure, gives the MPC in a statement.

“The strong appreciation of the Swiss franc has increased at the same time the level of indebtedness of households with liabilities in that currency, which may lead to reduce their consumption” – emphasizes the MPC.

In Poland, preliminary data on national accounts for 2014. Indicate that GDP growth in the fourth quarter. Fell slightly, remaining above 3%, said the MPC.

Most of the 15 surveyed by the agency ISBnews analysts expected the first reduction of the earliest at the next meeting. However, three economists expected a cut at the present meeting – by 25 bp. Most analysts believe that at the end of the year will be the main interest rate was 1.75%.

The last interest rate reduction took place in October last year. R. MPC then wrote in his statement that due to the uncertainty about the future economic situation, does not rule out further monetary policy adjustment.

(ISBnews)