NBP MPC Press Release - 2017-04-05
Central bank: nbp | Type: decision | Date: 2017-04-05

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Warsaw, 5 April 2017 
Information from the meeting of the Monetary Policy 
Council held on 4-5 April 2017 
 
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 growth remains moderate, with signs of recovery strengthening in 
many economies. In the euro area, GDP growth is stable, accompanied by favourable 
sentiment in the economy. In the United States, economic conditions are supported by 
improving labour market and a rebound in investment, although recent data point to 
some deceleration of growth in 2017 Q1. In China , economic activity growth has 
stabilised, while in Russia economic conditions remain weak. 
In March, global commodity prices fell, yet remained higher than a year before. As a 
result, in many countries the annual price growth rates are significantly higher than in 
2016, but their rise has come to a halt . At the same time, in many economies, including 
the euro area, core inflation is still moderate amid low demand pressure. 
The European Central Bank keeps interest rates close to zero, including the deposit 
rate below zero. The ECB also continues its asset purchase programme, albeit at a slower 
pace since April. The Federal Reserve has increased its interest rates, indicating further 
monetary policy tightening in the future. 
In Poland, recent data on production still point to improving economic conditions in 
2017 Q1. Growth in economic activity is driven mainly by increasing consumer demand, 
supported by a rise in employment and wages, very good consumer sentiment and child 
benefit payments. This is confirmed by robust growth in retail sales. 
The annual growth in prices of consumer goods and services , after a significant rise 
at the beginning of the year, declined somewhat in March. Core inflation remains low , 
which points to still weak demand pressure. Despite growing employment and wages, 
growth in unit labour costs remains moderate. 
In the Council’s opinion, inflation will stabilise at a moderate level over the following 
quarters. The stabilisation of price growth in the coming quarte rs will result from fading 
effects of the past increase in global commodity prices, with only a gradual rise in 
domestic inflationary pressure stemming from improving domestic economic conditions. 
In consequence, the risk of inflation running persistently above the target in the medium 
term is limited. 
 
 
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The Council confirms its assessment that , given the available data and forecasts , the 
current level of interest rates is conducive to keeping the Polish economy on the 
sustainable growth path and maintaining macroeconomic balance.