The reference rate was kept at 5.75 per cent; the lombard rate at 6.25 per cent; the deposit rate at 5.25 per cent; the rediscount rate at 5.80 per cent; and the discount rate was retained at 5.85 per cent, a release from the bank said.
Poland’s central bank recently decided to keep its interest rates unchanged as domestic economic conditions are still weak.
The bank felt inflation is currently significantly high by rising energy carriers’ prices and by other regulatory factors.
The price pressure in the domestic economy is also stimulated by the marked wage growth.
Inflation will remain elevated in the coming quarters.
The MPC felt inflation is currently significantly high by rising energy carriers’ prices and by other regulatory factors. The price pressure in the domestic economy is also stimulated by the marked wage growth.
At the same time, demand and cost pressures in the Polish economy remain relatively low, which amidst weakened economic conditions and lower inflation pressure abroad curbs domestic inflation pressure.
Inflation will remain elevated in the coming quarters, and in the case of a further increase in energy prices at the beginning of 2025, it will rise, NBP said.
Data suggests that in the third quarter (Q3) this year, the country’s annual gross domestic product (GDP) growth could have been somewhat lower than in Q2. In particular, retail sales as well as industrial production and construction and assembly output in September were lower than a year ago.
In the labour market, unemployment remains low and the number of working persons continues to be high, although employment in the enterprise sector in September this year was lower than a year ago. At the same time, the wage growth is still running high.
According to the Statistics Poland flash estimate, annual consumer price index-based inflation in October this year was 5 per cent against 4.9 per cent in September. Inflation has been rising since mid-2024. The significant fall in producer prices in annual terms persists, the NBP release noted.
Fibre2Fashion News Desk (DS)
