Poland keeps interest rates unchanged
February 6, 2014
Poland's central bank NBP left rates unchanged at 2.50%, as declared and as anticipated, at its February sitting on Wednesday, and maintained its guidance for rates to hold flat to end-H1 in line with conviction that a recovery is well on its way.
Poland's Monetary Policy Council is satisfied with the Q4 GDP growth, but sees growth structure as suboptimal, NBP President Marek Belka told a news conference following the council’s sitting.
"I want to say that the economic results, especially of Q4 look decent, which makes us cheer," Belka said. "We expect a gradual acceleration of GDP growth in 2014."
Poland's GDP grew an estimated 1.6% year-on-year in 2013, 0.1 ppt above expectations for 1.5% increase, with investments down by 0.4% and domestic demand edging down by 0.2%, the Central Statistical Office (GUS) said in late January. According to Finance Minister Mateusz Szczurek Poland likely recorded a 2.9% GDP growth in Q4 2013, the official said on Wednesday morning.
Belka also said that the council feels no rush to commit to markets for H2 policy.
"What to do in Q2, Q3 and Q4 - we will consider somewhat later," Belka said. "for now we have lots of time, we wish to avoid situation that we accustom markets to any play, either a rise or fall in bond prices."
The council feels "in control" with "no reason to change our approach" as conditions allow for GDP growth to accelerate amid low inflation, Belka also said.