The Monetary Policy Council (RPP), the Polish central bank’s rate-setting body, unexpectedly broke its rate-hiking cycle despite rising inflation and kept the reference interest rate at 6.75% on October 5.
The National Bank of Poland’s lombard rate remained at 7.25%, the rediscount rate at 6.80% and the discount rate at 6.85%.
The RPP also left the deposit rate unchanged at 6.25%.
The rate-setting body’s decision went against the market consensus of a 25-basis-point hike and ignored September’s spike in inflation that surprised economists.
The prices of consumer goods and services (Consumer Price Index, CPI) increased by 17.2% YoY and by 1.6% MoM in September, according to the Central Statistical Office (GUS). (The First News/Business World Magazine)