Interest rates in Poland. There is a decision of the Monetary Policy Council

On Wednesday, the two-day meeting of the Monetary Policy Council ended. The body decided to keep interest rates unchanged:

• reference rate 5.75% per annum;

• Lombard rate 6.25% per annum;

• deposit rate 5.25% per annum;

• bills of exchange rediscount rate of 5.80% per annum;

• bill discount rate 5.85% per annum.

Interest rates remain unchanged again

The Monetary Policy Council (RPP) has decided to leave interest rates unchanged for the ninth time in a row (the last rate cut was in October last year). This decision is not a surprise to the market, as the President of the National Bank of Poland (NBP) and the Chairman of the Monetary Policy Council, Adam Glapiński, has publicly announced that there is no chance of a rate cut.

During his latest press conference, the central banker explained that maintaining high interest rates was necessary to bring inflation down from double-digit levels and remains necessary.

— The Monetary Policy Council is focused on keeping inflation as low as possible. (…) Unfortunately, we expect inflation to rise in the second half of the year – Glapiński emphasized, adding that at the end of the year, with the partial unfreezing of energy prices, the price dynamics will increase to 5.2%.

— In such a situation, interest rates cannot be lowered. The probability of a reduction in interest rates in this scenario (partial unfreezing of prices — ed.) is zero — added.

The next press conference of the central bank president is scheduled for tomorrow at 3:00 p.m. In the meantime, we will have to wait until early September for the next decisions on interest rates. The August meeting of the MPC will be non-decisive.

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