The Monetary Policy Council kept all NBP interest rates unchanged.
The reference rate is still 0.10 percent. on an annual basis; lombard rate 0.50% on an annual basis; deposit rate 0.00% on an annual basis; rediscount rate 0.11% on an annual basis; discount rate 0.12% on an annual basis.
After the meeting, the MPC informed that the monetary policy pursued by the NBP was conducive to the consolidation of economic activity recovery after the pandemic recession and stabilized inflation at a level consistent with the NBP’s inflation target in the medium term.
It was also recalled that inflation in Poland, according to a flash estimate by the Central Statistical Office, increased in August this year. up to 5.4 percent on a year-to-year basis, and on a monthly basis it amounted to 0.2%.
“Increased inflation results to a large extent from the increase in fuel prices related to oil prices in the world markets that are significantly higher than in the previous year, as well as from the increase in food prices. Simultaneously the annual inflation rate continues to be pushed up by the increase in electricity priceswhich took place at the beginning of this year. and increases in fees for garbage collection, i.e. factors that – like the increase in raw material prices – are independent of the domestic monetary policy” – informuje RPP.
It added that higher inflation was also driven by the increase in the costs of operating enterprises in a pandemic and the costs of international transport, as well as temporary disruptions in global supply networks.
“The above-mentioned factors will probably contribute to keeping the annual inflation rate above the upper limit for deviations from the inflation target in the coming months. Simultaneously next yearafter some of the factors temporarily increasing the price dynamics have faded out, inflation is expected to decline“- indicated in the press release.
According to the MPC, inflation developments next year will depend on the durability of the economic recovery, including the situation on the labor market after the end of aid programs.
It was explained that “taking into account the reasons for the currently elevated inflation and its expected temporary nature, and at the same time taking into account the uncertainty about the sustainability and scale of the economic recovery, the NBP keeps interest rates unchanged”.