Poland’s central bank chief sees recovery in country’s Q3 GDP data
December 5, 2013
Governor of Poland's central bank Marek Belka
The structure of Poland's GDP in the third quarter of 2013 indicates a gradual, ongoing and possibly irreversible revival in the economy, Marek Belka, the governor of the National Bank of Poland (NBP), said at a press conference on Wednesday.
The changes in the GDP structure show that domestic demand and investment layouts edged up in the third quarter, while the share of net exports is relatively smaller, which proves that domestic demand is stabilizing and even slightly rebounding, Belka said.
"We are satisfied to see that domestic demand rose, albeit in a microscopic way," Belka said of the Q3 GDP growth structure.
Investment spending pulled out of recession in Q3 and "while it is hard to speak of growth, it's not a decline, so its progress," he said.
That diversification of drivers left Poland "headed in the right direction" with a recovery which is "slow, gradual but irreversible," Belka added.
"This gives us hope that the recovery will be longer, that we won't get stuck in shallow waters," he added. "Certainly today we are much more optimistic than a year ago."
Poland's Monetary Policy Council left all interest rates unchanged at record low for a fifth month at its meeting on Wednesday as a recovery in the European Union’s largest eastern economy poses no risk for inflation, the central bank (NBP) said in a statement.
The decision, which is in line with market expectations, means that the NBP reference rate will be at 2.5%, the lombard rate - 4.0%, the deposit rate - 1.00% and the rediscount rate - at 2.75%.
The decision comes just one month after the council said it would keep interest rates flat to at least mid-2014, reportedly a unanimous decision. Prior guidance had been for flat rates through at least end-2014.