MPC: Rates unchanged; the risk of inflation below the target in the medium term … – Virtual Poland

Warsaw, 06/03/2015 (ISBnews) – The Monetary Policy Council (MPC) kept interest rates unchanged, which means that the main reference rate is still 1.5%, the central bank said. Communication Council maintained its view, according to which, together with the expected gradual acceleration of economic growth and improvement of the economic situation in the euro area and the good situation on the domestic labor market, decreases the risk of inflation remaining below target in the medium term.

“In the Council’s assessment, in the coming quarters, annual price growth would still be negative, mainly due to the earlier strong declines in commodity prices. At the same time the expected gradual acceleration of economic growth, following in the conditions of economic recovery in the euro area and the good situation on the domestic the labor market, reduces the risk of inflation remaining below target in the medium term. As a result, the Council decided to keep the NBP interest rates unchanged, “- says the statement released after the meeting.

The MPC notes that due to the moderate growth in demand and still negative output gap in the economy there is no demand pressure. At the same time low commodity prices and moderate growth of nominal wages contribute to the maintenance of the lack of cost pressures. As a result, the annual growth rate of consumer prices remains negative, although a slight increase in fuel and food prices in recent years reduced the scale of deflation.

In Poland, real GDP growth in the first quarter. Accelerated (to 3.6% against 3.3% in the fourth quarter. 2014.).

“The main source of growth in economic activity remained growth in domestic demand, including consumption and investment, progressive improvement in conditions in the labor market, good financial situation of enterprises and the growth in lending. Economic recovery also contributed to the acceleration in export growth, supported the improvement of the economic situation in the euro zone. In April, however, there was a lower growth of industrial production and retail sales, though it was probably temporary “- reads.

After lowering interest rates by 50 basis points in March 2015. MPC announced, this decision means closing the cycle of monetary policy easing.

According to banking analysts, the level of interest rates will not change in the coming months, and most of them think that the first decision in this regard should expect only in 2016. When he starts the term of office of the new Council.

(ISBnews)