Conference following the June meeting of the Monetary Policy Council
At the meeting held on 7 and 8 June, the Monetary Policy Council decided to keep the NBP interest rates unchanged. Thus, the reference rate stands at 1.50%, the lombard rate at 2.50%, the deposit rate at 0.50% and the rediscount rate at 1.75%.
"In the Council’s assessment, price growth will stay negative in the coming quarters due to the earlier fall in global commodity prices. At the same time, after the temporary slowdown in GDP growth at the beginning of the year, steady economic growth is expected in the coming quarters. The key driver of economic growth will continue to be consumer demand driven by rising employment, forecasted acceleration of wage growth and an increase in social benefits. This notwithstanding, the downside risks to the global economic conditions and the volatility of commodity prices remain the sources of uncertainty for the domestic economy as well as for price growth. Council members confirm their assessment that – given the available data and forecasts – the current level of interest rates helped to keep the Polish economy on a sustainable growth path and maintain macroeconomic stability.”
When asked at the press conference about phenomena that could persuade the Council to consider lowering interest rates, Professor Marek Belka said: "We're dealing with, on the one hand, phenomena which could actually persuade us to lower rates, and on the other hand, phenomena which lead us in a completely different direction. The first quarter data were undoubtedly disappointing; however, we expect that this is a temporary phenomenon. After all, the first month of the second quarter has already shown us a decisive rebound," added professor Belka.
Apart from the MPC Chairman, the conference was attended by Jerzy Osiatyński and Dr. Łukasz Hardt.
The next MPC meeting is scheduled for 5-6 July 2016.