NBP MPC Press Release - 2019-05-15
Central bank: nbp | Type: decision | Date: 2019-05-15

Warsaw, 15 May 2019 
Information from the meeting of the Monetary Policy Council 
held on 14-15 May 2019 
The Council decided to keep the NBP interest rates unchanged: 
▪ reference rate at 1.50%; 
▪ lombard rate at 2.50%; 
▪ deposit rate at 0.50%; 
▪ rediscount rate at 1.75%. 
 
Incoming data suggest that global growth in 2019 Q1 continued at a relatively slow 
pace, although economic conditions ha ve improved somewhat in some of the largest 
economies. At the same time, sentiment in industry was still weak, with more upbeat signs 
coming from the service sector. In the euro area, d espite a pick -up in quarterly GDP 
growth, the pace of economic activity growth remains relatively slow. In the United States, 
economic conditions stay strong, and the quarterly GDP growth in 2019 Q1 was higher 
than in the previous quarter. In China, economic activity growth stabilised at the 
beginning of the year. 
Since the beginning of 2019, global oil prices have been rising, which translated 
into somewhat higher inflation in many countries. Alongside that, core inflation in the 
external environment of the Polish economy, including the euro area, has picked up 
slightly. 
The European Central Bank is keeping interest rates close to zero, including the 
deposit rate below zero, and reinvests maturing securities bought under the asset 
purchase programme. The US Federal Reserve is keeping interest rates unchanged. At the 
same time, the Fed is gradually limiting the pace of its balance sheet reduction. 
In Poland, economic conditions remain good, although GDP growth in 2019 Q1 
was somewhat softer than in previous quarters. Activity growth is driven by rising 
consumption – albeit at a slightly lower rate than in previous quarters – fuelled by 
increasing employment and wages as well as very high consumer sentiment. This is 
accompanied by a rise in investment. 
In recent months, consumer price growth has increased, which was accounted for 
by rising fuel and food pric es as well as higher core inflation. Despite this, inflation 
continues to run at moderate levels. 
In the Council's assessment, the outlook for economic conditions in Poland remains 
favourable. However, in the quarters to come, there will probably be a gradual slowdown 
in GDP growth. At the same time, inflation will remain at a moderate level and, in the 
monetary policy transmission horizon, will stay close to the target. 
 
 
The Council judges that the current level of interest rates is conducive to keeping 
the Polish economy on a sustainable growth path and maintaining macroeconomic 
stability.