RPP keeps interest rates unchanged

To a surprise of no one, the Monetary Policy Council (RPP) has decided to keep interest rates unchanged.

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.

According to NBP’s head Adam Glapiński, the rates should remain at the level until the end of the next year. “This is my private expectation and I haven’t changed it. I don’t see reasons to change rates until the end of 2018, but it doesn’t have to be an opinion shared by all MPC members,” Glapiński said.

He added that the bank will likely to slightly increase the path of expected inflation when it publishes its new longer-term forecasts in November but said price growth was likely to ease in the coming quarters.

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