NBP MPC Press Release - 2017-05-17
Central bank: nbp | Type: decision | Date: 2017-05-17

Warsaw, 17 May 2017 
Information from the meeting of the Monetary Policy 
Council held on 16-17 May 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 economic conditions are showing further signs of improvement, particularly 
in industry and international trade. In the euro area, d ata point to ongoing recovery. In 
the U nited States, GDP growth declined in 2017 Q1, most probably due to temporary 
factors. In China, economic growth was higher than in the previous quarter, yet current 
data do not indicate a sustained acceleration in growth. 
In many countries, the annual inflation rates are markedly higher than in 2016, 
reflecting mainly an earlier increase in commodity prices. However, energy commodity 
prices, mostly oil, have fallen recently. 
The European Central Bank keeps interest rates close to zero, including the deposit 
rate below zero. The ECB also continues its asset purchase programme. At the same 
time, the Federal Reserve indicates further monetary policy tightening. 
In Poland, incoming data point to a pick -up in GDP growth in 2017 Q1. Economic 
growth is s till driven primarily by increasing consumer demand, supported by rising 
employment and wages, good consumer sentiment and disbursement of benefits. This is 
accompanied by improving conditions in industry and construction, which may point to 
a gradual recovery in investment demand. 
The annual growth in prices of consumer goods and services, following a significant 
rise at the beginning of the year, has stabilised at a moderate level. At the same time, 
core inflation , though gradually increasing, remains low , which points to still limited 
demand pressure. Despite growing employment and wages, growth in unit labour costs 
remains moderate. 
In the Council's opinion , in the following quarters inflation will remain moderate 
amid fading effects of the past increase in global commodity prices, with only a gradual 
rise in domestic inflationary pressure stemming from improving domestic economic 
conditions. In consequence, the risk of inflation running persistently above the target in 
the medium term is limited. 
The Council confirms its assessment that , given the available data and forecasts , the 
current level of interest rates is conducive to keeping the Polish economy on the 
sustainable growth path and maintaining macroeconomic balance.