NBP MPC Press Release - 2019-12-04
Central bank: nbp | Type: decision | Date: 2019-12-04

Warsaw, 4 December 2019 
Information from the meeting of the Monetary Policy Council 
held on 3-4 December 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%. 
 
Global economic growth remains relatively low , and uncertainty about the global 
outlook persists. In the euro area, economic activity growth remains slow alongside the 
ongoing downturn in industry. In the United States, economic conditions continue to be 
relatively strong, although, like in many other economies, industrial activity is declining. 
In China economic activity growth continues to slow down. 
In these conditions, inflation in many countries is running at a moderate level and in 
the euro area it is low. 
The European Central Bank is keeping the deposit rate below zero , while conducting 
asset purchases and signalling the maintenance of loose monetary policy in the coming 
quarters. After the interest rate cuts of recent months, the US Federal Reserve is keeping 
the rates unchanged. 
In Poland, economic conditions remain good, despite slower economic growth in 2019 
Q3. GDP growth is supported by stable consumption growth, fuelled by favourable labour 
market conditions, very strong consumer confidence and social benefit payments. 
Investment continues to rise in 2019 Q3 , albeit at a slower pace. At the same time, the 
contribution of net exports to GDP growth remained positive in 2019 Q3. 
According to the GUS flash estimate, inflation stood at 2.6% y/y in November 2019 . 
Inflation is driven up by elevated food price growth, while being curbed by lower than a 
year ago energy prices, including fuel prices. Alongside that, core inflation, after a rise in 
recent months, has remained moderate. 
In the Council's assessment, the outlook for economic conditions in Poland remains 
favourable, and GDP growth , despite the expected decline, will continue at a relatively 
high level in the coming quarters. At the same time, there remains uncertainty about the 
scale and persistence of the slowdown abroad and its impact on domestic economic 
activity. Inflation – after a temporary rise in 2020 Q1 – will stay close to the target in the 
monetary policy transmission horizon. 
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.