NBP MPC Press Release - 2017-01-11
Central bank: nbp | Type: decision | Date: 2017-01-11

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Warsaw, 11 January 2017 
Information from the meeting of the Monetary Policy 
Council held on 10-11 January 2017 
 
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%. 
 
Economic growth abroad remains moderate, with signs of recovery in global 
industry. In the euro area, economic growth has been stable, albeit diverse across its 
member states. In Germany, economic growth in 2016 Q4 probably accelerated, while in 
other large euro area economies it remained low. In the United States, expansion has 
continued, supported by improvement in the labour market reflected both in rising 
employment and wages . In China, there are signs of improvement in economic 
conditions, yet GDP growth is still lower than in previous years. 
Prices of energy commodities, including oil, have risen over recent months. In 
consequence, inflation has picked up in many economies, including in the euro area. 
The European Central Bank has been keeping the interest rates close to zero, 
including the deposit rate below zero. The ECB is also continu ing its asset purchase 
programme. The Federal Reserve raised the interest rates in December 2016 and 
indicated their further rise in 2017. 
In Poland, GDP growth in 2016 Q4 was probably subdued. However, monthly data 
signal s ome improvement in economic activity over the recent past. Economic growth 
has been mainly driven by increasing consumer demand, supported by a rise in 
employment and wages, very good consumer sentiment and child benefit payments. At 
the same time, GDP growth was contained by a fall in investment, caused to a large 
extent by temporarily lower use of EU funds after the completion of the previous EU 
financial perspective. 
Annual growth in prices of consumer goods and services has been increasing – in line 
with flash estimate it was 0.8% y/y in December 2016. Growth in producer prices has also 
picked up. The increase in price growth has resulted mainly from energy commodity 
prices being higher than a year ago, i.e. factors beyond the direct impact of domestic 
monetary policy. At the same time, price growth has been contained by low inflationary 
pressure abroad and negative output gap in the domestic economy. 
In the Council’s opinion, price growth will continue to increase in the coming 
months, yet it will remain moderate. Besides commodity prices being higher than a year 
 
 
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ago, price growth will be supported by an expected acceleration in economic growth 
amid a gradual increase in the investment growth rate and a stable rise in consumption. 
The Council confirms its assessment that – given the available data and forecasts – 
the current level of interest rates i s conducive to keeping the Polish economy on the 
sustainable growth path and maintaining macroeconomic balance.