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Financial News: Poland Keeps Rates On Hold

Poland Keeps Rates On Hold

07/11/2018 - 08:06:00 (RTTNews)

(RTTNews) - Poland's central bank kept its key interest rate unchanged at a record low on Wednesday, in line with economists' expectations.

The Monetary Policy Council of the National Bank of Poland decided to maintain the key reference rate at a record low 1.50 percent.

The previous change in the reference rate was a half-basis point reduction in March 2015.

The lombard rate was retained at 2.50 percent and the deposit rate at 0.50 percent. The rediscount rate was left unchanged at 1.75 percent.

Liam Carson, an economist at Capital Economics, said inflation is likely to climb above target in the first half of 2019, resulting in the first rate hike since 2012.

The economist forecasts a total of 100 basis point of hikes over 2019 as a whole, taking the policy rate to 2.50 percent by year-end.

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