Conference following the July meeting of the Monetary Policy Council
The interest rates remained unchanged. MPC members communicated that the Council did not change its stance in monetary policy, yet it took account of the incoming more noticeable indications of emerging economic slowdown.
At its meetings of 3 and 4 July 2012 the Monetary Policy Council decided to keep the interest rates unchanged. The reference rate remains at 4.75 % on an annual basis.
The Council had access to the most recent projections of inflation and the GDP this time. Quoting after the press release following the MPC meeting: ”The July inflation and GDP projection implies that GDP growth in 2013 will fall below its 2012 level and then accelerate in 2014. At the same time, inflation, after a temporary rise in 2012 Q3, will be gradually declining and will be close to the inflation target in 2013”.
The press conference following the MPC meeting was attended by the President of the National Bank of Poland, Professor Marek Belka and MPC members, Professor Andrzej Kaźmierczak and Andrzej Rzońca Ph.D. When answering journalists questions they affirmed that in principle the Council had not changed their stance, as pointed out in the last sentence of the press release: „ The Council does not rule out the possibility of further monetary policy adjustment, should the outlook for inflation returning to the target deteriorate”. Whereas the President of the NBP on several occasions reiterated that the Council took note of ever clearer signs of economic slowdown, he also argued that the efficient monetary policy in Poland requires that the central bank’s interest rates are positive in real terms.
– Poland is one of few countries of the world, at the current juncture, which can afford to pursue a normal monetary policy, oriented towards stabilizing the economy and counteracting the unwinding of imbalances – declared Professor Marek Belka.