Polish Central Bank Continues To See Gradual Return To Inflation Target

The National Bank of Poland has published the statement after a two-day meeting of its Monetary Policy Council, during which members voted to leave interest rates unchanged.

• The Council noted that "incoming data confirm a slowdown in economic activity," albeit the "labour market situation remains good." Moreover, "data on the corporate sector show that nominal annual growth in average wages in December 2022 slowed down compared to the previous month."
• "In final months of 2022, commodity prices and producer price growth declined, and disruptions in global value chains were markedly less acute than earlier, which together with the expected economic slowdown, will support a gradual easing of consumer price dynamics."
• The paragraph on inflation outlook was taken verbatim from the January statement, with the Council noting that "the hitherto significant monetary policy tightening by NBP will support a [gradual] decline in inflation (...) towards the NBP inflation target."
• The MPC reiterated that the "NBP may intervene in the foreign exchange market, in particular to limit fluctuations of the zloty exchange rate that are inconsistent with the direction of monetary policy."
• Click here to see the full statement.