NBP MPC Press Release - 2015-01-14
Central bank: nbp | Type: decision | Date: 2015-01-14

Warsaw, 14 January 2015 
 
Information from the meeting of the Monetary Policy 
Council held on 13-14 January 2015 
 
The Council has decided to keep the NBP interest rates unchanged at: 
 reference rate at 2.00% on an annual basis; 
 lombard rate at 3.00% on an annual basis; 
 deposit rate at 1.00% on an annual basis; 
 rediscount rate at 2.25% on an annual basis. 
 
Global economic activity growth remains moderate, although the situation varies 
across countries. The United States observed continued recovery in 2014 Q4, and the 
data on GDP in 2014 Q3 have been revised upwards. In contrast, activity growth in the 
euro area has continued to be slow, and the 2015 growth forecasts have been revised 
downwards in the recent months. In the largest emerging economies, economic activity 
growth has also remained weak as for these countries. Russia’s output growth has 
probably decreased close to zero. 
In the past month, oil prices continued to decline sharply. Along with the moderate 
global economic growth, this has been conducive to inflation persisting at very low 
levels in many countries, and contributed to deflation occurring in the euro area. 
Major central banks continue their expansionary monetary policy and keep interest 
rates at historically low levels. The ECB and the Bank of Japan are running asset 
purchase programmes. At the same time, expectations of a gradual interest rate increase 
in the United States have strengthened which have contributed to a depreciation of the 
emerging market currencies, including the zloty. Heightened risk aversion in the 
international financial markets persists. 
 In Poland, economic activity growth in 2014 Q4 may have slowed down slightly. In 
November, industrial output gro wth decreased to near -zero levels, while construction 
and assembly output continued to fall. At the same time, retail sales growth decreased. 
Growth in bank lending – both to enterprises and households – continued at a steady 
pace. 
Labour market data poin t to a further rise in corporate employment, which support s 
the decline in seasonally -adjusted unemployment. At the same time, wage pressure 
remains limited, as indicated by continued moderate wage growth in the corporate 
sector. 
In November, CPI inflation remained negative and was below expectations at -0.6% 
y/y. This was accompanied by a decrease in the majority of core inflation indices, which 
confirms the absence of demand pressure in the economy. The decline in producer prices 
 
 
has also continued, indic ating a lack of cost pressure in the economy. This is 
accompanied by very low inflation expectations of enterprises and households. 
The Council decided to keep the NBP interest rates unchanged . The Council 
highlights that uncertainty regarding economic con ditions in the environment of the 
Polish economy persists . If the expected period of deflation extends , which would 
increase the risk of inflation remaining below the target in the medium term, and 
incoming data confirm a slowdown in economic activity as well as weak growth in the 
environment of the Polish economy persists, the Council does not rule out further 
adjustment of monetary policy.