Interest rates remain unchanged, no hikes in sight – NBP head

The Monetary Policy Council (RPP) has decided to keep interest rates unchanged: reference rate at 1.5 percent, Lombard rate at 2.5 percent, deposit rate at 0.5 percent and rediscount rate at 1.75 percent. RPP stated that inflation remains close to its target value. In March, flash CPI stood at 1.3 percent, according to GUS data, 0.1 pp lower than in February. NBP head Adam Glapiński stated that he sees no clouds on the horizon that would force RPP to change interest rates. He also added that barring any unforeseeable circumstances, such as a large scale trade war, the situation should remain unchanged for two years. Earlier, Glapiński had stated that no rates increases were expected in 2018. “I am extending that period,” he said. Glapiński also stated that the only direction from which inflationary pressure could come is the labor market, but currently no warning signs are visible.