NBP MPC Press Release - 2014-06-03
Central bank: nbp | Type: decision | Date: 2014-06-03

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Warsaw, 3 June 2014 
 
 
Information from the meeting of the Monetary Policy 
Council held on 2-3 June 2014 
 
The Council decided to keep NBP interest rates unchanged: 
 reference rate at 2.50% on an annual basis; 
 lombard rate at 4.00% on an annual basis; 
 deposit rate at 1.00% on an annual basis; 
 bill rediscount rate at 2.75% on an annual basis; 
 
Growth in global economic activity remains moderate, although the economic 
situation varies across countries. In the United States, following a contraction in GDP in 
early 2014, indicators of economic activity have improved over recent months. In the 
euro area, weak recovery continues and GDP growth in 2014 Q1 was slower than 
expected. M onetary policy of the m ajor central banks remains expansionary. The 
European Central Bank has indicated a possibility of further monetary policy easing in 
the near future. 
Activity growth remains slow relative to previous performance in the largest 
emerging market economies, including China and Russia, where it weakened. Moderate 
growth in global economic activity is conducive to maintaining low inflation in many 
countries. In recent months, inflation fell to near zero in the Central and Eastern Europe. 
In Poland, GDP growth in 2014 Q1 accelerated to 3.4% y/y, close to the March 
projection. An acceleration in economic growth was driven by faster investment growth 
and a slight acceleration in consum er demand. In April, industrial output growth 
stabilised, while construction and assembly output dec elerated. At the same time, retail 
sales growth picked up . This was accompanied by moderate acceleration in lending 
growth, both to companies and households. 
 The recovery has been translating into an improvement of labour market conditions. 
According to the Labour Force Survey, in 2014 Q1 employment growth in the Polish 
economy accelerated. This was conducive to a decline in unemployment, yet it remains 
elevated. Heightened unemployment restricts wage pressure in the economy. 
In April, CPI inflation fell substantially below the March projection, to 0.3%, i.e. 
markedly below the NBP inflation target of 2.5%. All core inflation measures also 
declined. This was accompanied by a further fall in producer prices and decline in 
inflation expectations. 
 In the opinion of the Council, gradual economic recovery is likely to continue in the 
coming quarters, while inflationary pressure will remain very low. The Council decided 
to keep NBP interest rates unchanged. The Council maintains its assessment that NBP 
 
 
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interest rates should be kept unchanged until the end of the third quarter of 2014 . More 
comprehensive assessment of monetary policy perspectives and potential adjustment of 
interest rates will be possible after the Council gets acquainted with incoming 
information, including the July NBP projection.