MNI NBP WATCH: Rates Held, Outlook Unchanged
MNI (LONDON) - The National Bank of Poland held key interest rates at 5.75% as expected on Wednesday. (See MNI EM NBPWATCH: Another Policy Hold, Dovish Communications Tilt)
CPI nflation slipped from 5.0% in October to 4.6%. But while weakened economic conditions and lower inflationary pressures abroad helped slow the pace of price growth, wage increases, and rising food and energy costs continued to moderate the disinflationary process.
Core inflation remains above headline inflation, which is expected to remain “markedly” above the NBP’s inflation target in the coming quarters, the Bank said in a statement, before returning to target over the medium term.
“However, developments in energy prices, due to their probable unfreezing in the second half of 2025, as well as the impact of elevated energy price growth on inflation expectations, remain an uncertainty factor for the expected horizon for the return of inflation to the target," it said.
“Inflation developments over the medium term will be also affected by the further fiscal and regulatory policy measures, the pace of expected economic recovery in Poland and the labour market conditions.”