Moscow, 28.09.2016 (“war and peace, the Council of Monetary Policy (MPC) retained the monetary policy for 2017″ medium-term inflation target at 2.5% with a deviation band width of ±1 percentage point announced by the Central Bank. The MPC at the same time she stressed that the main objective of monetary policy the national BANK will maintain a stable level of prices while supporting the government’s economic policies.
“Taking into account the external nature of shocks that cause a decoupling of prices from the target, and at the same time, not wanting to admit to irreversible long-term decline in inflation expectations, which may increase the risk of strengthening trends deflacyjnych and as a result of their negative macroeconomic consequences, the Board decided to keep the medium-term inflation target at 2.5% with a symmetrical tolerance of width ±1 percentage point”, – stated in the “Principles…”.
MPC notes that since 2004. the average inflation rate in Poland was 2.1% per year, and was close to the inflation target of the National Bank of Poland (NBP), although in some years dynamics of prices was out of range of deviations from the target.
“Periodic deviations of inflation from the target, including in recent years the negative dynamics of prices has not caused, however, the emergence of expectations deflacyjnych. At the same time economic growth has been in recent years relatively stable and close to the long-term trend, and the economy is not growing macroeconomic imbalances. This indicates the effectiveness of the strategy of inflation in ensuring the long-term price stability, while promoting sustainable economic growth”, – is spoken further.
the Council explains that adopted an inflation target is a medium-term nature, which means that due to strong changes in raw material prices or other shocks to macroeconomic and financial inflation may periodically deviate from the target, forming even outside the range of deviations from the target. In such circumstances, the reaction of monetary policy to a shock depends on its cause and nature and sustainability assessment of its impact, including impact on processes cenotwórcze and inflation expectations.
“In 2017. the main objective of monetary policy the national BANK will maintain a stable level of prices while supporting the government’s economic policy if it does not limit the realization of the main objectives of the national BANK. In order to maintain price stability, the national BANK will apply the strategy of inflation. At the same time, monetary policy will be conducted so as to contribute to sustainable economic growth and stability of the financial system. In this regard, the national BANK will respond flexibly to shocks, causing deviations of the dynamics of prices from the target, taking into account the nature of these shocks, and how their impact on inflationary processes and entrepreneurial activity”, – is spoken further in the document.
a Flexible approach to the inflation target is particularly important when – as in recent years, deviations of price dynamics from the goal are mainly related to the strong decline in prices for raw materials in the world, reminds MAC. Invoked thus, the negative dynamics of prices is expected, because the external sources and in light of currently available information, does not impact negatively on a company’s activities and economic situation of households in Poland, not specified.
“this does Not mean that prolonged deflation would be a valid phenomenon, if it led to the emergence of deflacyjnych clear expectations and weakening economic growth. In the low dynamics of the price setting parameters of the monetary policy depends primarily on the relative valuation advantage of fast cast and the dynamics of prices to the inflation target to the cost and economic risk to macroeconomic and financial stability, which contained a monetary policy aimed at a rapid increase of inflation”, – is spoken further.
In this regard, in 2017. the parameters of the monetary policy, including the level of interest rates will be tuned to the situation in the economy thus, to ensure long-term price stability and at the same time to maintain stable economic growth and financial system stability, stated the MPC.
“through the development of ‘Creating a monetary policy in 2017′, the Council stressed that the monetary policy will be implemented in conditions of uncertainty. The most important source of uncertainty for monetary policy in 2017. is the possibility of weakening conditions in the environment of the Polish economy and prospects of investment in Russia in the coming years. At the same time a significant risk factor for price dynamics will remain the formation of prices for raw materials on world markets, and the possibility of slower than expected wage growth in Poland”, is given in the document.
In the “Fundamentals of monetary policy in 2017 have been taken into account information available up to September 6, 2016.
war and peace
No comments:
Post a Comment