RPP keeps rates unchanged against expectations

The Monetary Policy Council (RPP) has decided to maintain interest rates unchanged after its two-day sitting on Tuesday and Wednesday, against market expectations which saw the main rate cut by 25 basis points. Many economists had spoken against a possible cut before the sitting, saying that the rates are already very low and further cuts will likely bring more negative effects, such as discouraging Poles from keeping bank deposits and increasing the outflow of portfolio investments from Poland. The NBP’s reference rate stands at 2.00 percent, the lombard rate at 3.00 percent, the deposit rate at 1.00 percent and the rediscount rate at 2.25 percent.