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Interest rates in Poland – June 2023. MPC statement

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The Monetary Policy Council left the NBP interest rates unchanged. In a communiqué published after the June meeting, the MPC explained that the earlier “strong tightening of the NBP’s monetary policy will lead to a decrease in inflation in Poland towards the target”.

On Tuesday, the two-day decision-making meeting of the Monetary Policy Council ended. Main, the reference interest rate was maintained at the level of 6.75 percent. The June meeting was the ninth in a row when the MPC did not change interest rates. This decision was in line with analysts’ expectations.

Statement after the June MPC meeting

The Council assesses that the economic downturn in the environment of the Polish economy, together with the fall in commodity prices, will continue to have a limiting impact on the global inflationwhich will also continue to contribute to lower price dynamics in Poland,” the MPC wrote in a statement after the June decision on interest rates.

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She added that “the decline in domestic inflation will be driven by the weakening of dynamics GDPincluding consumption, taking place in the conditions of a significant decline in credit dynamics” and “as a result, the Council assesses that the previously implemented strong tightening of the NBP’s monetary policy will lead to a decline in inflation in Poland towards the NBP inflation target”.

At the same time, due to the scale and durability of the impact of earlier shocks, which remain beyond the influence of the domestic monetary policy, inflation will return to the NBP inflation target gradually. in the message.

Just like a month ago, the MPC pointed out that “further decisions of the Council will depend on the incoming information on the outlook for inflation and economic activity”.


Interest rates – June 2023

NBP interest rates after the June meeting:

  • reference rate 6.75 percent. on an annual basis,
  • lombard rate of 7.25 percent. on an annual basis,
  • deposit rate 6.25 percent on an annual basis,
  • rediscount rate of 6.80 percent. on an annual basis,
  • discount rate on bills of exchange 6.85 percent. on an annual basis.

NBP reference ratePAP/Maciej Zielinski

Economists believe that if interest rates are cut this year, it will only happen in the second half of the year. Some analysts believe that conditions for cuts will appear next year.

Main photo source: Shutterstock

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