MPC: increase the dynamics of prices and investments – the pulse of the Business

during the meeting days on December 6-7, the MPC decided to keep interest rates of the national BANK at a constant level. The base rate is 1.50%. on an annual basis, Lombard rate to 2.50%. the Deposit rate is 0.50 percent. on an annual basis, and interest redyskonta bills 1.75 percent. on an annual basis.

“According to the Council, in subsequent quarters, price dynamics will continue to grow gradually. In addition to the expiration of the previous effects of the falling price of raw materials rising prices next year will contribute to the expected gradual acceleration of economic growth after the transitional decline in GDP this year. The acceleration of GDP growth in coming quarters will contribute to the increase in the dynamics of consumption. Next year should also increase the investment dynamics, which will contribute to the good financial situation of the company, a high level of use of their production capacities and the gradual increase in the degree of absorption of EU funds”, – stated in the message published on the website of the national Bank.

the Council also retained the view that in the light of available data and projections, the current level of interest rates contributes to the maintenance of the Polish economy on a sustainable growth path and helps to keep the balance of macroeconomic.

the Board recognized that the growth of economic activity remains moderate in the world, with continuing uncertainty about its prospects. “The Euro zone’s economic growth is stable, although in the third quarter, GDP growth declined in some countries, including in Germany. GDP growth slowed down also in Central and Eastern Europe. In the United States continues good demand, and in China economic growth lower than in previous years. It is accompanied by the reduction of the scale of the recession in Russia. In the context of moderate economic growth globally and lower than in previous years, the prices of raw materials prices in the environment of the Polish economy remains very low, although gradually increasing,” the report said.

– as noted by the Council, the European Central Bank keeps interest rates at a level close to zero, this leg of Deposit below zero, as well as continuing purchases of financial assets.

“the Federal Reserve system of the United States indicates a probable rise in interest rates in the near future. The prospect of tightening monetary policy in the Us contributed to the strengthening of the dollar and rising bond yields in many countries. Ago was accompanied by the weakening of currencies of emerging economies, including gold,” – stated in the message.

“In Poland, GDP growth in the third quarter dropped, and the data on economic activity indicate that it is formed at the reduced level, and in IV quarter the Slowdown in economic growth in Poland is mainly associated with a reduction in investment caused by a temporary reduction of the use of EU funds after completion of the previous financial perspective of the EU,” he added.

in the Opinion of the Board the dynamics of the investment also reduces the uncertainty and keep it among enterprises. “Lower GDP growth in the third quarter also contributed to weaker than in the previous quarter the growth of exports, associated probably with the decrease of economic growth in the main trading partners of Poland.

“the national economic growth, however, is still relying on faster and faster-growing consumer demand in terms of systematic improvement in the labor market, the favorable attitudes of households”, – stated in the message.