NBP MPC Press Release - 2017-12-05
Central bank: nbp | Type: decision | Date: 2017-12-05

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Warsaw, 5 December 2017 
Information from the meeting of the Monetary Policy Council 
held on 4-5 December 2017 
 
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%. 
 
Global economy continues to recover. Economic growth in the euro area remains 
higher than in the previous year, driven by an improvement in the labour market 
conditions, favourable sentiment of economic agents, and a recovery in international 
trade. Also in the United States economic conditions remain favourable. At the same time, 
in China incoming data indicate a slight slowdown in GDP growth. 
Despite ongoing global rec overy, inflation abroad remains moderate, on the back of 
persistently low domestic inflationary pressure in many countries. At the same time, 
prices of certain commodities, including oil, have risen in recent months. 
The European Central Bank keeps interest rates close to zero, including the deposit 
rate below zero, and continues to purchase financial assets. The US Federal Reserve started 
reducing its balance sheet in October. 
In Poland, annual GDP growth accelerated in 2017 Q3 to 4.9%. Growth was still driven 
primarily by consumer demand, supported by rising employment and wages, 
disbursement of benefits and very good consumer sentiment. Gross fixed capital 
formation also picked up in 2017 Q3 , mainly on the back of a rise in public investment, 
while the corporate investment growth rate remained negative. The acceleration in GDP 
growth was fuelled by a significantly higher export growth rate. 
Annual consumer price growth rose in November to 2.5%. The main factor behind the 
rise in inflation is high food price growth and markedly higher than in previous years 
energy price growth . Core inflation net of food and energy prices remains low. Wage 
growth in national economy remained stable in 2017 Q3 and the growth in unit labour 
costs in national economy declined, despite a rise in wage growth in the enterprise sector. 
In the Council ’s assessment, favourable economic conditions in the Polish economy 
will continue in the next quarters. Yet, it may be expected that GDP growth will decelerate 
slightly in the following years. Taking into account the present information, the Council 
judges that inflation will remain close to the inflation target over the projection horizon. 
As a result, the current level of interest rates is conducive to keeping the Polish econo my 
on the sustainable growth path and maintaining macroeconomic stability. 
 
 
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The Council adopted a resolution on the remuneration on the required reserve. In line 
with this resolution, the remuneration of the required reserve will amount to 0.50%. The 
resolution comes into force on 1 January 2018.