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Financial News: Poland Keeps Rates Unchanged

Poland Keeps Rates Unchanged

01/10/2018 - 07:03:00 (RTTNews)

(RTTNews) - Poland's central bank maintained its record low interest rate on Wednesday, in line with economists' expectations.

The Monetary Policy Council of the National Bank of Poland decided to hold 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 maintained at 1.75 percent.

Liam Carson, an economist at Capital Economics, said it seems most likely that a tightening cycle will begin at the MPC meeting in July - which coincides with the release of an updated set of economic forecasts.

The economist forecasts a total of 100 basis point of hikes over 2018 as a whole, taking the policy rate to 2.50 percent by year-end.

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