Poland’s central bank lowers reference rate to 2%, Lombard to 3%

By Jennifer Chiou

New York, Oct. 8 – National Bank of Poland’s Monetary Policy Council voted to cut the reference rate to 2% from 2.5%, the Lombard rate to 3% from 4% and the bill rediscount rate to 2.25% from 2.75%, while the deposit rate stayed unchanged at 1%, according to a news release.

The meeting was held on Tuesday and Wednesday.

The council also decided that required reserve funds will be remunerated at 0.9 of the bank reference rate.

In August, the CPI inflation declined again and was negative 0.3% year over year. This followed a decline in July. The council attributed the decline in inflation to a decline in food prices against a high supply of agricultural products.

The release said that growth in global economic activity remains moderate, although economic situation varies across countries. Economic recovery in the United States continues and economic outlook remains positive.

At the same time, economic activity in the euro area is still subdued and the business climate indicators have recently deteriorated, the council noted.

In the largest emerging-market economies, GDP growth is also relatively low and in some of them, including Russia, has been decelerating.

Prices of many agricultural and energy commodities have decreased in recent months, the release stated.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.