Poland keeps reference rate at 2½%; January sees 0.7% inflation

By Jennifer Chiou

New York, March 5 - National Bank of Poland's Monetary Policy Council once more decided to keep its reference rate unchanged at 2½% at a meeting held on Tuesday and Wednesday.

The Lombard rate is 4%, the deposit rate is 1%, and the bill discount rate is 2.75%.

According to a council release, Consumer Price Index inflation stood at 0.7% in January based on preliminary data. That figure is unchanged from December and up from 0.6% in November. The figures compare to the bank's 2.5% inflation target.

The council believes that gradual economic recovery is likely to continue in the coming quarters, however, inflationary pressures will remain subdued.

Data on domestic economic activity show a continuation of the gradual recovery in Poland, according to the council. Economic growth in the fourth quarter exceeded that of the third quarter, as GDP growth was supported primarily by net exports.

At the same time, domestic demand contribution to GDP growth increased, the release stated.

Poland last cut the reference rate to 2½% from 2¾% on July 3, 2013.

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