If PMI drops below 50, rates could be raised – MPP Member

According to Eryk Łon, a Monetary Policy Council (RPP) member, the interest rates could be raised if the Purchasing Managers Index (PMI) drops below the 50 point threshold. In June, the PMI stood at 53.1 points. If that’s not the case, rates should remain unchanged in 2018 as well. “I think it is rather likely that interest rates will remain at their current level also in 2018, as inflation pressure is not very significant,” Łon said in an interview with Parkiet daily.

The NBP’s reference rate stands at 1.5 percent, the lombard rate at 2.50 percent, the deposit rate at 0.50 percent and the rediscount rate at 1.75 percent.

In March 2015, the RPP lowered interest rates by 0.5 basis points. Since then, they have remained unchanged.

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