Poland’s central bank leaves reference rate at 2%, Lombard at 3%

By Jennifer Chiou

New York, Nov. 5 – National Bank of Poland’s Monetary Policy Council voted to keep the reference rate at 2% after cutting it from 2½% last month.

The council meeting was held on Tuesday and Wednesday.

Meanwhile, the Lombard rate stays at 3%, while the bill rediscount rate also remains 2¼%. The former had been changed from 4% in October, and the latter was 2¾% in October.

According to a news release, the deposit rate stayed unchanged at 1%.

Like in August, the CPI inflation declined again and was negative 0.3% year over year in September.

The release said that the decline in prices, in annual terms, was mostly due to falling fuel prices, which resulted from a fall in oil prices in the global market.

Growth in global economic activity remains moderate, although the economic situation varies across countries. In the United States, economic growth in 2013 Q3 remained relatively robust. In the euro area, economic activity is still low and the projections for economic growth in the euro area have been revised downwards, the release noted.

At the same time, the economic growth in the euro area next year is expected to be higher than this year, the council said. This is accompanied by a slowdown in GDP growth in China and growth in economic activity in Russia coming to a halt.

Major central banks continue their expansionary monetary policy. However, as the economic situation varies across major economies, monetary policies in these economies are also diverging, the release added.

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