NBP MPC Press Release - 2019-06-05
Central bank: nbp | Type: decision | Date: 2019-06-05

Warsaw, 5 June 2019 
Information from the meeting of the Monetary Policy Council 
held on 4-5 June 2019 
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%. 
 
Incoming data suggest that global growth continues at a relatively slow pace, amid 
heightened uncertainty about the global economic outlook in the coming quarters. At the 
same time, sentiment in industry is still weak, with more upbeat signs coming from the 
service sector. In the euro area, despite higher quarterly GDP growth, the pace of economic 
activity growth remains relatively slow. In the United States, economic conditions remain 
strong, and the quarterly GDP growth in 2019 Q1 was higher than in the previous quarter. 
In China , GDP growth stabilised in 2019 Q1, albeit recent data suggest the risk of a 
weakening in economic conditions in the current quarter. 
Oil prices have declined, following a significant increase since the beginning of the year. 
Alongside that, in the recent period the global prices of certain food products have risen. 
As a result, inflation in many countries has edged up . Core inflation in the external 
environment of the Polish economy, including the euro area, has also picked up in the 
recent period. 
The European Central Bank is keeping interest rates close to zero, including the deposit 
rate below zero, and reinvests maturing securities bought under the asset purchase 
programme. The US Federal Reserve is keeping interest rates unchanged. At the same 
time, the Fed is gradually limiting the pace of its balance sheet reduction. 
In Poland, economic conditions remain goo d, and annual GDP growth in 2019 Q1 
amounted to 4.7%. Activity growth is driven by rising consumption – albeit at a slightly 
lower rate than in previous quarters – fuelled by increasing employment and wages as 
well as very high consumer sentiment. This is accompanied by a marked rise in 
investment, including a strong recovery in investment outlays of enterprises. In 2019 Q1, 
net exports also made a positive contribution to GDP growth, despite the weakening 
economic conditions in the external environment of the Polish economy. 
In recent months, consumer price growth has increased, which was accounted for by 
rising fuel and food prices as well as higher core inflation. Nonetheless, inflation continues 
to run at moderate levels. 
In the Council's assessment, the outlook for economic conditions in Poland remains 
favourable, and GDP growth this year may turn out to be slightly higher than expected in 
 
 
the March projection. At the same time, inflation will remain at a moderate level and, in 
the monetary policy transmission horizon, will stay 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.