Monetary council issues expected rate hold
May 8, 2014
Poland central bank's Monetary Policy Council (MPC) kept interest rates unchanged at the May sitting at their all-time low of 2.5%, for the tenth straight month as risks mount that the Ukrainian conflict may threaten the country’s economic revival.
The rate council remains cautious with forward guidance revision on account of a very unpredictable situation in Ukraine, NBP head Marek Belka told a news conference.
"The situation in Ukraine is very dynamic, very serious and one of the reasons of our relative cautiousness in terms of communicating our intentions on interest rates," Belka said.
The “best moment” to consider changes in communicating the central bank’s policy intentions will come in July, Belka said.