The last decision of the Monetary Policy Council this year. We know what the interest rate is

The Monetary Policy Council decided to leave interest rates unchanged. The key NBP rate (reference rate) is still 5.75%.

A Monetary Policy Council meeting took place on December 5 and 6, 2023, during which the Monetary Policy Council set NBP interest rates at the following levels:

  • reference interest rate 5.75 percent on an annual basis;

  • Lombard rate 6.25 percent on an annual basis;

  • deposit interest rate 5.25 percent on an annual basis;

  • rediscount rate of bills 5.80 percent on an annual basis;

  • exchange discount rate 5.85 percent on an annual basis.

The MPC’s decision is in line with economists’ expectations. According to them, the discussion about monetary easing could return in March when inflation and GDP projections are released and when the shape of fiscal policy is known.

The President of the National Bank of Poland on lowering interest rates

– The possible date for a possible return to lowering interest rates will be January 2024, NBP President Adam Glapiński said at a conference in November. – Maybe in January there will be clarity about the budget amendment, shields, VAT, etc. And then I can say (when the cuts will take place) – he added.

According to Glapiński, Poland has achieved moderate inflation and is moving very quickly towards so-called inflation. to sneak. He stated that when inflation reaches 5 percent, the central bank will pursue its target of 2.5 percent with the same vigor and intensity.

S&P Forecast: Inflation will only move closer to target in 2025

S&P Global Ratings said last week that the council would keep rates unchanged until next spring to gain more clarity on the impact of fiscal policy and economic growth on inflation. The agency expects inflation to move closer to the 2.5% target. (with a deviation of 1 percentage point in each direction) in 2025.

In November, the Monetary Policy Council kept rates unchanged after cutting them by 25 basis points (in the case of the key benchmark rate) to 5.75% in October. In September, the country decided to lower interest rates for the first time: by 75 percentage points. up to 6 percent in the case of the reference rate.

Source: Do Rzeczy