The lombard rate was reduced by 100 basis points to 3.00 percent. The deposit rate remained unchanged, 1.00 per cent., The rediscount rate was reduced by 50 basis points to 2.25 percent.
As he said at a press conference the president of the National Bank of Polish Marek Belka, Wednesday’s MPC decision not was unanimous. Chairman also did not rule out further cuts in interest rates, but as he said “they do not promises.”
Experts had expected cuts, pointing to weak GDP growth and deflation, ie decline in the general price level, which economists they consider harmful to the economy.
Sale Wednesday’s base rate Polish National Bank will amount to 2 per cent.
Prof. Marek Belka announces record-low interest rates at the conference MPC.
source: TVN 24 / x-News
Beam: b cancer recovery on the horizon is an important argument
Low inflation and the lack of economic recovery on the horizon – are the reasons that determined the interest rate cut. The Monetary Policy Council cut interest rates by half a point and did not rule out further cuts in the near future.
Chairman of the Board and President of the National Bank of Polish Marek Belka noted that the rate of price growth will be very slow for a long time, but soon we should say goodbye to deflation, or declining prices. Long-term deflation is a phenomenon harmful to the economy, because it discourages the purchase and inhibits the economy.
Marek Belka said that even without this phenomenon for now do not expect faster growth in GDP. No recovery on the horizon is an important argument, which resulted in the Council’s decision to cut rates.
Marek Belka: data indicate the economic slowdown, inflation below target.
Source: TVN 24 / x-News
Good news for repaying the loan in dollars
This is good news for all those who repay the loan in dollars, explains Catherine Siwek the Idea Bank.
– for example, if someone pays the mortgage, his monthly payment will fall by 25 – 30 zł for every 100 thousand. zł repaid the loan. At the same time stop credit reduction is good news for people who have some kind of tax arrears. From the lombard rate depends in turn on the amount of interest matters – explains Siwek.
According to the chief economist of Credit Agricole, James Borowski in the case of the MPC decision can talk about surprise. The expert believes that the impact of the MPC decision were weaker than expected data from the Polish economy. It is mainly industrial production and construction output. Policymakers were also impressed with worsening data from the euro zone, including Germany.
Economists expect further reductions
In his opinion, you can expect further interest rate cuts . Expert estimates that in November, the most important of them will fall by another 25 basis points. Later, according to James Borowski will be an extended period of stabilization.
Elzbieta Chojna-Duch, a member of the Monetary Policy Council: Council late with the reduction in interest rates.
Source: TVN 24 Business and World / x News
Economists are uncertain: at the next meeting of the MPC cut rates & gt; & gt; & gt;
BGZ chief economist Dariusz Winek noted reduction of the lombard rate by 100 basis points. In his view, it is relevant from the point of view of loans, because the interest rate decreases. – The movement to support private consumption. Council wants to stimulate economic growth through private consumption. Such asymmetrical cut is a rarity, but you can risk saying that in the near future, this situation may occur again – he said.
Contrary to the expectations of most analysts, the MPC decided to cut interest rates by 50 bps., setting the reference rate at 2.0 percent. Monetary authorities could no longer tolerate the fact that the rate of consumer price growth deviates from the target already by 2.8 percentage points. There is no doubt that it has begun a new cycle of monetary loosening in Poland – expert rating Employers of Poland Lukasz Kozlowski.
Foreign exchange market with equanimity the decision of the MPC
Wednesday’s decision by the MPC cut down its main interest rate by 50 basis points Forex accepted with equanimity – rated analysts. They added that the reaction may be a slight delay. After hours. 18 euro paid 4.18 zł, and the dollar of 3.30 zł.
Simon Zajkowski of Brokerage mBank said that after the decision of the gold temporarily weakened in relation to the common currency. – Course pair euro / zloty rose to 4.1950, which is the highest level in more than three weeks – pointed. – In relation to the other major currencies zloty remained relatively stable. Rates pair dollar / gold moved in a range of 3.30 – 3.3150, and the pound / gold between 5.31 and 5.33 – added.
Zajkowski assessment in the coming days on the wave of the MPC decision, gold can continue lose value against the euro. – However, in the coming weeks along with the increasing likelihood of a further easing of monetary policy by the European Central Bank and the inflow of foreign capital into the Polish market debt, gold should again recover – he noted. – Upcoming strong support for the euro exchange rate pairs / gold is around 4.17 – added.
Expert: cuts are not shocking, the market expected them more than economists
Source: TVN 24 Business and World / x-News
“The main reason for the MPC decision is deflation”
Main Post Bank economist Monica jackets before the announcement of the MPC said that the main reason for the expected reduction is deflation, a decline in the general price level. This phenomenon is considered by economists to be harmful to the economy, can still persist for some time. Meanwhile, the inflation target toward which the MPC is 2.5 percent.
A similar Council decision expected Xelion Investment House analyst Piotr Kuczynski. The expert argued, however, that weak economic growth argues for a deeper cut feet – about half a percentage point.
The reduction of interest rates also provided analyst Open Finance Roman Przasnyski.
– The next meeting will be the more important not only because of the uncertainty regarding the scale of the reduction, but also signals that may flow from the statements after the meeting. Certainly, however, the period of boredom in monetary policy – at least for a time – no danger – he added.
MPC kept the interest rates unchanged since July 2013., when cut by 25 bps ended started in November 2012. cycle of monetary easing, which amounted to a total of 225 bp.
Economists: the cycle of the NBP interest rates will be 50 – 75 pb & gt; & gt; & gt;
Economists on interest rates: Can be cut by 50 points. base.
Source: TVN 24 Business and World / x-News
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