NBP MPC Press Release - 2019-02-06
Central bank: nbp | Type: decision | Date: 2019-02-06

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Warsaw, 6 February 2019 
Information from the meeting of the Monetary Policy Council 
held on 5-6 February 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 indicate a weakening in some of the largest economies, amid 
heightened uncertainty regarding the outlook for global economic activity in the coming 
quarters. In the euro area, GDP growth in 2018 Q4 remained lower than in the first half of 
2018, while economic climate indicators declined in the recent period. In the United States, 
GDP growth in 2018 Q4 slowed down, although economic conditions in this economy 
remain strong. At the same time, in China activity growth continues to gradually decline. 
Despite some increase in global oil prices in the recent period, their level is lower than 
in 2018 Q3. This is leading to a decline in inflation in many countries. Alongside that, core 
inflation in the environment of the Polish economy, including the euro area, remains low. 
The European Central Bank keeps interest rates close to zero, including the deposit 
rate below zero. At the same time, the ECB continues to reinvest the funds from the 
maturing securities. Following an interest rate hike in December 2018, the US Federal 
Reserve is keeping interest rates unchanged. 
In Poland , preliminary GDP data for 2018 suggest that GDP growth in 2018 Q4 
remained relatively high, although it was slightly lower than in previous quarters. GDP 
growth is still driven by rising consumption – albeit at a slightly lower rate than in 
previous quarters – that is fuelled by increasing employment and wages as well as very 
high consumer sentiment. This was accompanied by a rise in investment. 
Notwithstanding relatively high economic growth and wages increasing faster than in 
previous years, annual consumer price growth has declined in recent months and remains 
moderate. At the same time, inflation net of food and energy prices continues to be low. 
In the Council's assessment, the outlook for economic conditions in Poland remains 
favourable. However, in the quarters to come, there will probably be a gradual slowdown 
in GDP growth. At the same time, according to current forecasts, the annual price growth 
will increase in the coming months, yet – due to lower oil prices than in 2018 Q3 and the 
freeze on electricity prices – the scale of this increase will be markedly smaller than 
anticipated in the November projection. In the medium term, 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. 
 
 
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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.