Interest rates remain unchanged

The National Bank of Poland’s Monetary Policy Council (RPP) left interest rates unchanged during its July sitting, according to an NBP statement issued on Wednesday. Such a decision was widely expected by economists. The reference rate remains at 2.50 percent, the lombard rate at 4.00 percent, the deposit rate at 1.00 percent and the rediscount rate at 2.75 percent. In recent statements the RPP has maintained its stance of continuing a neutral monetary policy. It did not plan any changes to interest rates at least until the end of the third quarter of 2014.

UPDATE: At a press conference on Wednesday afternoon, NBP head Marek Belka said that the RPP has decided to drop the forward guidance to keep rates unchanged until the end of Q3. “This must not be however understood as a plan for raising rates in September,” Belka was quoted as saying by ISBnews. “We currently see the probability of such a move as low.”