NBP MPC Press Release - 2012-09-05
Central bank: nbp | Type: decision | Date: 2012-09-05

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 
 
 
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w w w . n b p . p l / r p p 
 
Warsaw, 5 September 2012 
 
INFORMATION FROM THE MEETING OF THE MONETARY POLICY 
COUNCIL 
held on 4-5 September 2012 
The Council decided to keep the NBP interest rates unchanged: 
 reference rate at 4.75% on an annual basis; 
 lombard rate at6.25% on an annual basis; 
 deposit rate at 3.25% on an annual basis; 
 rediscount rate at 5.00% on an annual basis. 
Global economic activity remains low. Recession in the euro area has been accompanied by 
moderate growth in the United States . In emerging economies e conomic growth decreased in 
Q2 2012. Subdued global economic growth supported easing of inflation in many countries. 
Recently, the sentiment in the international financial markets has improved somewhat, which 
has supported prices of some financial assets and encouraged capital inflows to emerging 
markets. At the same time, global prices of agricultural and energy commodities have risen 
considerably. 
The data on GDP in Poland point to slower than expected economic growth in 2012 Q2 . 
Growth of c onsumption and investment expenditures, including corporate investment, 
decreased. Change in inventor ies made a significantly negative contribution to GDP growth. 
Exports growth also slowed down. However, due to a simultaneous decline in imports, net 
exports were a major contributor to GDP growth. Weaker output growth was accompanied by 
deteriorating corporate financial results. 
At the same time , industrial production and retail sales in July rose faster than on average in 
2012 Q2. Yet, the decline in construction output continued and business indicators remain 
unfavourable. 
According to the Labour Force Survey, in 2012 Q2 employment growth came to a halt and the 
unemployment rate was higher than a year ago, mainly due to a further increase in the labour 
force participation. At the sam e time, wage growth in the economy, including the corporate 
sector, decelerated. 
The economic slowdown was accompanied with a gradual deceleration in corporate lending. 
Lending to households also continued to slow down, driven by further decline in consum er 
loans and slower growth in mortgage lending, including decrease in foreign currency loans. 
Yet, the household savings rate continued to decline in 2012 Q1. 
After a temporary rise in June, C PI inflation fell to 4.0% in July . However, it remained above 
the NBP's inflation target of 2.5%. Inflation net of food and energy prices did not change. At 
the same time, households' inflation expectations stayed elevated. 
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In the opinion of the Council, inflation will decrease gradually over the coming months, as the 
statistical base effect wanes amidst slowing demand in the economy . The recently observed 
increase in global commodity prices poses an upward risk to the expected decrease in inflation. 
In the medium term, economic slowdown will be conductive to inflation returning to the target. 
The Council decided to keep the NBP interest rates unchanged. 
Should the incoming data confirm further weakening of econom ic conditions, and should the 
risk of increase in inflationary pressure be limited, the Council will consider adjustment of 
monetary policy.