NBP MPC Press Release - 2018-02-07
Central bank: nbp | Type: decision | Date: 2018-02-07

1/2 
Warsaw, 7 February 2018 
Information from the meeting of the Monetary Policy Council 
held on 6-7 February 2018 
 
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%. 
 
The global economic conditions continue to improve markedly. In the euro area, GDP 
data signal further economic recovery, driven by an improvement in the labour market 
conditions, rising sentiment of economic agents, and a stronger world trade growth. Also 
in the United States economic conditions remain favourable. In China, in turn, following 
a stabilization in GDP growth in 2017, a further gradual slowdown is anticipated. 
Despite ongoing global recovery, 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. This has been 
accompanied by a fall in agricultural commodity prices. 
The European Central Bank keeps interest rates close to zero, including the deposit 
rate below zero, while still purchasing financial assets. In turn, t he US Federal Reserve 
continues a gradual reduction of its balance sheet, signalling further interest rate increases 
in the future. 
In Poland, incoming data point to continued good economic conditions. According to 
a preliminary estimate, GDP growth in 2017 stood at 4.6%. Growth is still primarily driven 
by domestic demand, including consumer demand, supported by rising employment and 
wages, disbursement of benefits and very good consumer confidence. This is accompanied 
by a recovery in investment, mainly in the public sector. 2017 Q4 probably also saw a rise 
in gross fixed capital formation in the enterprise sector. Growth in economic activity is 
additionally supported by strong external demand, reflected in the positive contribution 
of net exports to GDP growth. 
Despite the acceleration in economic growth, annual consumer price growth continues 
to run at a moderate level. In 2017, average annual inflation amounted to 2.0% . At the 
same time – although wage growth in enterprises increased – core inflation net of food 
and energy prices remains low. 
In the Council's assessment, favourable economic conditions in the Polish economy 
will continue in the next quarters. Yet, GDP growth in 2018 will probably be slightly lower 
than in the second half of 2017. Taking into account the current information, the Council 
judges that inflation will remain close to the target over the projection horizon. As a result, 
 
 
2/2 
the current level of interest rates is conducive to keeping the Polish economy on the 
sustainable growth path and maintaining macroeconomic stability.