NBP MPC Press Release - 2012-04-04
Central bank: nbp | Type: decision | Date: 2012-04-04

National Bank of Poland 
Monetary Policy Council 
 
 
00-919 Warszawa, ul. Świ ętokrzyska 11/21, phone 22 653 28 88, fax 22 653 13 28 
 
Warsaw, 4 April 2012 
 
INFORMATION FROM THE MEETING OF THE MONETARY POLICY 
COUNCIL 
held on 3-4 April 2012 
The Council decided to keep the NBP interest rates unchanged, i.e.: 
 reference rate at 4.50% on an annual basis; 
 lombard rate at 6.00% on an annual basis; 
 deposit rate at 3.00% on an annual basis; 
 rediscount rate at 4.75% on an annual basis. 
Global economic growth remains low. Recession in the euro area is accompanied by continued 
moderate growth in the United States.. Econom ic activity in some major emerging economies 
is still weakening. Global economic growth is being hampered by the ongoing adjustments in 
balance sheets of enterprises a nd households in some developed countries as well as by high 
fuel prices. Despite some decline, global infl ation remains heightened, still driven by high 
commodity prices. 
Following an earlier appreciation, exchange rates of emerging economies’ currencies, including 
the Polish zloty saw some stabilization. 
Some indicators on the Polish economy, including i ndustrial and constructi on output, together 
with several leading business indicators signa l some weakening of economic growth. However 
other data, including retail sales, indicate that the slowdown should not be considerable. 
Unemployment rate in February remained el evated. At the same time, employment in 
companies declined and wage growth retuned to a moderate level. Lending to corporates 
continued to rise, though its growth was some what slower. The growth of household loans 
continued to fall, which was driven by persis tent decline in consum er loans and further 
decrease in growth of mortgage loans. 
In February 2012, the annual CPI inflation rose to 4.3%, remaining markedly above the NBP’s 
inflation target of 2.5%. A slight increase was also noted in core inflation, mainly as a result of 
growth in prices of tobacco products following a rise in excise tax rates. At the same time 
growth in producer prices weakened. Some declin e was also observed in inflation expectations 
of enterprises and households, though they remain relatively high. 
In the opinion of the Council, in the medium term , inflation will be curbed to some extent by 
the expected economic slowdown amid moderate wage growth as well as continued fiscal 
tightening. The zloty appreciation at the begi nning of 2012 will also be conducive to lower 
inflation. 
In the short term, inflation – despite some e xpected decline – will probably remain above the 
NBP’s inflation target. Height ened inflation will be support ed by the previously observed 
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depreciation of the zloty and persistently high commodity pri ces. High growth in regulated 
prices will also contribute to elevated inflation. 
The Council decided to keep the NBP interest rates unchanged. In th e opinion of the Council, 
the expected mild economic slowdown in Poland over the monetary policy horizon increases 
the probability of inflation remaining above th e target in the medium term. Given the above, 
the Council will consider tightenin g of monetary policy in the nearest future, unless signs of 
considerable economic weakening in Poland appear and the outlook for inflation returning to 
the target improves.