NBP MPC Press Release - 2013-06-05
Central bank: nbp | Type: decision | Date: 2013-06-05

N a t i o n a l B a n k o f P o l a n d 
M o n e t a r y P o l i c y C o u n c i l 
 
 
00 - 9 1 9 W a r s z a w a , u l . Ś w i ę t o k r z y s k a 1 1 / 2 1 , p h o n e ( + 4 8 2 2 ) 6 5 3 2 8 8 8 , f a x (+ 4 8 2 2 ) 6 5 3 1 3 2 8 
w w w . n b p . p l / r p p 
 
Warsaw, 5 June 2013 
 
INFORMATION FROM THE MEETING OF THE MONETARY POLICY 
COUNCIL 
held on 4-5 June 2013 
The Council decided to decrease the NBP interest rates by 0.25 percentage points: 
 reference rate to 2.75% on an annual basis; 
 lombard rate to 4.25% on an annual basis; 
 deposit rate to 1.25% on an annual basis; 
 bill rediscount rate to 3.00% on an annual basis. 
 
Global economic activity remained weak in 2013 Q1. However, economic growth differed 
significantly across economies. GDP growth acceleration in the United States was accompanied 
by persisting recession in the euro area and some decline in GDP growth in some major 
developing countries, including China. In Germany, GDP growth was positive , whereas in 
other large euro area economies GDP continued to decline. Despite signs of some 
improvement, recent data on business conditions in the euro area point to persistently negative 
trends in that economy at the beginning of Q2. 
Weak global activity growth, and the previous fall in commodity prices , has supported further 
decline in inflation in many countries. 
In Poland, preliminary data on GDP in 2013 Q1 point to a slightly stronger than expected 
weakening in economic growth. Decline in GDP growth in Q1 resulted from lower positive 
contribution of net exports to G DP growth amidst persistently declining domestic demand. The 
decline in domestic demand – amidst persistent stagnation in consumption – continued to be 
driven by falling investment, yet, the fall was lower than in the previous quarter. The April data 
on industrial and construction output and retail sales, as well as the majority of business climate 
indicators show that weak economic growth continued at the beginning of Q2. 
The c ontinuing slowdown in demand in 2013 Q1 contributed to further deterioration in the 
labour market; in particular the number of employed decreased and unemployment rose. Also 
the April data on the corporate sector point to a continued decline in employment, accompanied 
by rising registered unemployment rate (in seasonally adjusted ter ms). The situation in the 
labour market supports low wage growth. 
In April 2013, growth in lending to the private sector remained limited. Both growth in loans to 
households and enterprises continued to be low. 
CPI inflation in April 2013 declined again , reaching 0.8% y/y, i.e. a level markedly below the 
NBP inflation target of 2.5% . The decline in inflation was mainly driven by a lower growth in 
energy prices, including prices of fuels. At the same time, low level of core inflation, as well as 
2 
 
a stronger decline in producer prices, confirm persistently low demand and cost pressure in the 
economy. This is accompanied by a further decline in inflation expectations of households. 
In the opinion of the Council, incoming data point to weaker than expected economic growth in 
Poland and a stronger – than forecasted in the March projection – decline in inflation. At the 
same time, uncertainty about the scale and tim ing of the expected economic recovery in the 
euro area persists, which can adversely affect economic a ctivity in Poland. Therefore, the 
Council decided to lower the NBP interest rates again. 
The Council assesses that monetary policy easing conducted since November 2012 supports 
economic recovery and limits the risk of inflation running below the NBP targe t in the medium 
term.