NBP MPC Press Release - 2016-12-07
Central bank: nbp | Type: decision | Date: 2016-12-07

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Warsaw, 7 December 2016 
Information from the meeting of the Monetary Policy 
Council held on 6-7 December 2016 
 
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 moderate with uncertainty about its outlook. In the 
euro area economic growth has been stable, yet in 2016 Q3 it eased in several member 
states, including Germany. GDP growth has decelerated also in the Central and Eastern 
European economies. In the United States , economic conditions have been favourable, 
while i n China economic growth has been lower than in previous years. I n Russia , 
recession has been receding. 
Amid moderate global economic growth and lower commodity prices than in 
previous years, price growth in the environment of the Polish economy has still been 
very low, albeit increasing. 
The European Central Bank has kept the interest rates close to zero, including the 
deposit rate bel ow zero, and has continued financial asset purchases. The Federal 
Reserve indicates a likely rise in the interest rates in the near future . As a result of the 
prospective monetary policy tightenin g in the United States , the US dollar has 
appreciated and bond yields have risen in many countries. In addition, the emerging 
market currencies, including the zloty, have depreciated. 
In Poland, GDP growth decelerated in 2016 Q3 and remained subdued also i n the 
current quarter as signalled by recent economic data. The slowdown has been caused 
mainly by a fall in investment related to temporarily lower absorption of EU funds after 
expiration of the previous EU financial framework . Investment has been additionally 
contained by uncertainty among enterprises . Lower GDP growth in 2016 Q3 resulted 
also from weaker increase in exports compared to the previous quarter , most probably 
stemming from slower economic growth in the major trading partners. Poland’s 
economic growth has been supported, in turn, by increasingly faster rise in consumer 
demand amid ongoing improvement in the labour market, favourable household 
sentiment and the child benefit payments under the ”Family 500 plus” programme. 
Annual growth in prices of consumer goods and services has been gradually rising – 
in November it was 0%. Also producer price growth has been accelerating at a moderate 
pace. The increase in price growth has resulted mainly from the dissipating effects of the 
earlier sharp fall in global c ommodity prices. Price growth has been contained by low 
 
 
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inflation abroad , negative output gap in the domestic economy and low inflation 
expectations. 
In the Council's opinion, price growth will continue to gradually increase. Besides 
waned effects of the earlier falls in commodity prices, price growth will be driven by an 
expected acceleration in GDP growth following its temporary easing in 2016 . GDP 
growth will be supported by faster rise in consumer demand. In addition, the investment 
growth rate should pick up in 2017, supported by good financial standing of enterprises 
and their high capacity utilisation, as well as a gradual increase in the absorption of EU 
funds. 
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.