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The Polish Monetary Policy Council (MPC) has decided to keep interest rates unchanged, according to a statement by the National Bank of Poland (NBP). The main reference rate remains at 6.75 percent, with other rates also remaining steady. The MPC’s decision comes amidst concerns about rising inflation in the country.
The NBP released its latest inflation projection, indicating that inflation is expected to range between 11.1 and 12.7 percent in 2023. The projection for 2024 forecasts inflation between 3.7 and 6.8 percent, while for 2025, it is estimated to be within 2.1 to 5.1 percent. These projections show a slight increase compared to previous estimates.
The MPC also reviewed the economic growth projection. According to the NBP, the projected GDP growth for 2023 is expected to range between -0.2 and 1.3 percent. In 2024, the projection shows growth between 1.4 and 3.3 percent, and for 2025, it is estimated to be within 2.1 to 4.4 percent. These figures indicate a slight improvement in economic performance.
The rationale behind the MPC’s decision to maintain interest rates will be revealed in a press conference scheduled for later in the day. This statement will shed light on the central bank’s approach in addressing inflationary pressures while supporting economic growth.