NBP MPC Press Release - 2014-04-09
Central bank: nbp | Type: decision | Date: 2014-04-09

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Warsaw, 9 April 2014 
 
 
Information from the meeting of the Monetary Policy 
Council held on 8-9 April 2014 
 
The Council decided to keep the 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 economic conditions are relatively 
favourable, while the euro area has been experiencing a slow, yet somewhat limited 
recovery. In the largest emerging economies activity growth remains low in comparison 
with their p revious performance, while in China there are signs of its weakening . 
Moderate growth in global economic activity is conducive to maintaining l ow inflation 
in many countries. 
Data on domestic economic activity confirm a continuation of the gradual recovery in 
Poland. In the first months of 2014 industrial output and retail sales growth accelerated . 
In February construction and assembly output increased as well. Activity growth in the 
subsequent quarters is signalled by favourable business climate indicators. 
The recovery is gradually being transmitted into labour market conditions. Signs of 
employment growth in the enterprise sector, as well as a decline in unemployment, have 
been observed . However, d espite a slight fal l in February, the unemployment rate 
remains at an elevated level, which restricts wage growth. 
In February 2014 CPI inflation amounted to 0.7%, thus remaining markedly below 
the NBP inflation target of 2. 5%. Core inflation also continued at a low level . At the 
same, time producer prices decline d further. This was accompanied by low inflation 
expectations. 
Lending growth to the private sector – while accelerating slightly – remains limited. 
However, t he modest increase in mortgage l oans and the further gradual revival in 
consumer loans starts to be also accompanied by a recovery in lending to enterprises. 
In the opinion of the Council, gradual economic recovery is likely to continue in the 
coming quarters, however, inflationary pressures will remain subdued. Therefore, the 
Council decided to keep NBP interest rates unchanged. In the Council’s assessment NBP 
interest rates should be kept unchanged for a longer period of time, i.e. at least until the 
end of the third quarter of 2014. 
 
 
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In the opinion of the Council, lowering interest rates in the first half of 2013 and 
keeping them unchanged in subsequent quarters, supports recovery of the domestic 
economy, gradual return of inflation to the target and stabilisation in the financial 
markets.