NBP MPC Press Release - 2018-05-16
Central bank: nbp | Type: decision | Date: 2018-05-16

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Warsaw, 16 May 2018 
 
 
Information from the meeting of the Monetary Policy Council 
held on 15-16 May 2018 
The Council decided to keep the NBP interest rates unchanged at: 
▪ 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 , despite a weakening in GDP growth 
in the major advanced economies at the beginning of the year. In the euro area, following 
a s lowdown in GDP growth in 2018 Q1 , which was probably of a temporary nature, 
incoming data suggest that economic situation continues to be favourable. Similarly, in 
the United States, economic conditions remain good, although GDP growth in this country 
also weakened in 2018 Q1. 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 p ressure across many countries. In 
addition, agricultural commodity prices are still lower than a year ago, whereas oil prices 
have recently increased. 
The European Central Bank keeps interest rates close to zero, including the deposit 
rate below zero, while still purchasing financial assets. At the same time, t he US Federal 
Reserve continues to gradually reduce its balance sheet, signalling further interest rate 
rises in the future. 
According to GUS flash estimate, the annual GDP growth in Poland in 2018 Q1 stood 
at 5.1%. Economic growth is supported by rising consumption, fuelled by increasing 
employment and wages, disbursement of benefits and very strong consumer sentiment. 
This is accompanied by a recovery in investment. Also favourable economic conditions 
abroad continue to support economic activity growth. 
Notwithstanding relatively high economic growth and wages rising faster than last 
year, consumer price growth remains 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 
 
 
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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.