NBP MPC Press Release - 2018-12-05
Central bank: nbp | Type: decision | Date: 2018-12-05

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Warsaw, 5 December 2018 
Information from the meeting of the Monetary Policy Council 
held on 4-5 December 2018 
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%. 
 
Global economic conditions remain favourable, although incoming data suggest a 
weakening in some economies. In the euro area, GDP growth declined in 2018 Q3, and 
incoming data indicate a gradual economic slowdown. In the United States, GDP data for 
2018 Q3 confirmed that economic conditions in this country are still very strong. In turn, 
in China activity growth is gradually slowing. 
Heightened uncertainty abou t the global economic outlook persists, which has an 
adverse effect on the prices of some assets in the international financial markets. At the 
same time, global oil prices have fallen sharply in the recent period. 
Inflation is still elevated in many countries due to the earlier increase in energy prices. 
At the same time, core inflation in the environment of the Polish economy, including the 
euro area, remains moderate. 
The European Central Bank keeps interest rates close to zero, including the deposit 
rate below zero. At the same time, the ECB continues to purchase financial assets, although 
it has announced the termination of the purchases by the end of the year. The Federal 
Reserve kept interest rates unchanged in November , after another interest rate hike in 
September. 
In Poland, preliminary GDP data for 2018 Q3 point to a strong economic conditions. 
GDP growth is still driven by rising – albeit at a slightly lower rat e than in the previous 
quarters – consumption, that is f uelled by increasing employment and wages as well as 
very high consumer sentiment. In 2018 Q3 , this was accompanied by a marked rise in 
investment. Amid relatively high growth of domestic demand and the weakening of 
economic conditions in Poland's external environment, net exports had a negative 
contribution to GDP growth. 
Notwithstanding relatively high economic growth and wages rising faster than in the 
previous year, annual consumer price growth has declined and remains moderate. At the 
same time, inflation net of food and energy prices continues to be low. 
In the Council's assessment, current information point s to a relatively favourable 
outlook for economic conditions in Poland, although a gradual slowing in GDP growth is 
expected in the years ahead. In 2019 inflation might be increased by rising energy prices, 
i.e. factor beyond the control of monetary policy. The scale of energy price growth in 2019 
 
 
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will probably be limited by the fall in oil prices seen in recent months. In the medium term, 
in turn, the expected slowdown in economic growth will have a dampening effect on 
inflation. Consequently, in the monetary policy transmission horizon inflation will remain 
close to the target. 
The Council judges that the current level of interest rates is conducive to keeping the 
Polish economy on a sustainable growth path and maintaining macroeconomic stability.