NBP MPC Press Release - 2018-06-06
Central bank: nbp | Type: decision | Date: 2018-06-06

1/1 
Warsaw, 6 June 2018 
Information from the meeting of the Monetary Policy 
Council held on 5-6 June 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%. 
 
Global economic conditions remain favourable. In particular, economic activity in the 
euro area is high, despite some weakening of GDP growth in 2018 Q1. Similarly, in the 
United States, economic conditions remain good, while incoming data suggest that a 
slowdown in GDP growth in 2018 Q1 was temporary. In China, in turn, economic 
growth has continued at stable rates for the past few quarters. 
Despite favourable global economic conditions, inflation abroad remains moderate 
on the back of persistently low domestic inflationary pressure across many countries. At 
the same time, oil prices – even with a recent decline – are still significantly higher than a 
year ago. 
The European Central Bank keep s interest rates close to zero, including the deposit 
rate below zero, while still purchasing financial assets. At the same time, the Federal 
Reserve continues to gradually reduce its balance sheet, signalling further interest rate 
increases. 
In Poland, annual GDP growth in 2018 Q1 was close to that recorded in the previous 
quarter. Economic growth is driven by rising consumption, fuelled by increasing 
employment and wages, disbursement of benefits and very strong consumer sentiment. 
This i s accompanied by a further recovery in investment. In 2018 Q1 , also rising 
inventories were a significant factor supporting economic growth, while contribution of 
net exports was negative. 
Notwithstanding relatively high economic growth and wages rising faster than in the 
previous year, consumer price growth remain s moderate. Inflation net of food and 
energy prices stays low. 
In the Council's assessment, current data continue to point to a favourable outlook 
for economic activity growth in Poland, despite the expected slight slowdown in GDP 
growth in the coming years. In line with the available forecasts, inflation will remain 
close to the target in the monetary policy transmission horizon. As a result, 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.