NBP MPC Press Release - 2012-06-06
Central bank: nbp | Type: decision | Date: 2012-06-06

National Bank of Poland 
Monetary Policy Council 
 
 
00-919 Warszawa, ul. Świ ętokrzyska 11/21, phone (+4822) 653 28 88, fax (+4822) 653 13 28 
 
Warsaw, 6 June 2012 
 
INFORMATION FROM THE MEETING OF THE MONETARY POLICY 
COUNCIL 
held on 5-6 June 2012 
The Council decided to keep the NBP interest rates unchanged, i.e.: 
 reference rate at 4.75% on an annual basis; 
 lombard rate at 6.25% on an annual basis; 
 deposit rate at 3.25% on an annual basis; 
 rediscount rate at 5.00% on an annual basis. 
Incoming data signal a stabilisation of economic activity in the global ec onomy at a low level. 
Stagnation in the euro area is accompanied by m oderate growth in the United States. At the 
same time, economic activity in the world’ s largest emerging economies has somewhat 
weakened. Global inflation, despite some decline, remains heightened. 
Since the previous meeting of the Council, se ntiment in the global financial markets has 
deteriorated, what was largely driven by rising concerns about the economic situation of some 
euro area countries. Deteriorated sentiment has led to depreciation of emerging economies’ 
currencies, including the zloty, as well as to decrease of commodity prices in global markets. 
In Poland, GDP data have confirmed a gra dual slowdown in economic growth. In 2012 Q1, 
stable consumption growth was accompanied by slower – as compared to the previous quarter – 
investment growth. Growth in Polish exports an d imports also slowed down. Monthly data on 
industrial and construction output as well as on retail sa les in April indicat e a possible further 
economic slowdown. 
According to the Labour Force Survey, the number of working persons in the economy 
continued to rise in 2012 Q1. In spite of higher number of working persons, unemployment rate 
increased as compared to a year ago, since the number of economically active persons also 
grew. At the same time, wage growth in the econo my, including in the enterprise sector, picked 
up somewhat. Acceleration of wages in 2012 Q1 co mbined with weaker GDP growth resulted 
in higher ULC growth. Yet, the April’s data on enterprises point to weakening employment and 
wage growth in this sector. 
In April, lending to enterprises continued to rise, albeit at a sl ower pace. At the same time, 
growth in lending to households decelerated further, what was the result of ongoing decline in 
consumer loans and slower growth in housing loans. 
The CPI inflation increased to 4.0% in April, remaining markedly above the NBP's inflation 
target of 2.5%. Core inflation rose as well. 
In the opinion of the Council, in the coming months inflation is likely to remain above the 
upper limit of deviations from the inflation ta rget, driven by high growth in administered 
prices, as well as weaker zloty exchange rate as compared to the previous year. 
 
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In the Council's opinion, in the medium term inflation will be curbed by economic slowdown 
and by the NBP interest rates increases implemented in 2011 and 2012. Incoming data, as well 
as the NBP’s July macroeconomic projection will enable a more comprehensive assessment of 
the scale of economic slowdown and future inflation developments in Poland, thus allowing for 
the assessment whether another adjustment of interest rates will be justified.