18:18 5 October 2022
Central bank unexpectedly kept interest rates unchanged
The Monetary Policy Council on Wednesday kept interest rates unchanged at 6.75%, while economists surveyed by PAP Biznes expected a rate increase by 25 basis points. The central bank lifted rates at each of its previous 11 meetings in an attempt to control surging inflation. The latest move, however, indicates that the bank is now more focused on supporting economic growth.
Market analyst Piotr Kuczyński wrote on Twitter that the decision to leave rates unchanged is "a surprise, which will bring a wave of criticism to the Council”. Most economists expected a rate increase as inflation in September soared to 17.2%. On the other hand, too fast rate hikes may cause a sharp economic slowdown and are also dangerous.
The central bank head Adam Glapiński will hold a press conference on Thursday.
