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.
The Council and NBP head Adam Glapiński said that he doesn’t see the need to change the rates until the end of next year. “There are some changes in data and expectations in the projection, but I do not change my mind. It would be good to keep rates at the present level until the end of 2018,” he said referring to an updated central bank forecast which expects inflation to rise 1.6 to 2.9 percent in 2018, up from an earlier forecast of 1.1 to 2.9 percent. For 2019, it foresees an increase of 1.7 to 3.7 percent, up from 1.3 to 3.6 percent.