The Monetary Policy Council in Poland decided on interest rates

The Monetary Policy Council in Poland (MPC) decided to raise interest rates by 25 basis points. This is the eleventh increase since October 2021 and it was expected.

Monetary Policy Council in Poland: 11 interest rate hike

The Monetary Policy Council (MPC) decided to raise interest rates by 25 basis points. Thus, the main reference rate increased to 6.75 percent. This is the eleventh interest rate hike since last October.

Interest rates increased to the following levels:

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

An interest rate hike by 25 basis points was one of the scenarios indicated by the President of the National Bank of Poland (NBP) Adam Glapiński in a recent interview for Business Insider Polska or twice 25 bp. However, it cannot be ruled out that we will stop raising interest rates for now, but at the same time we do not tie our hands together and announce the end of the rate hikes cycle. We operate in a pragmatic manner, said the head of the Central Bank.

The NBP president’s conference on yestrdays MPC decision is scheduled for today at 15.00.

Let us recall that a week ago the Central Statistical Office (GUS) released data on inflation. Analysts predicted the first decline in this indicator in months. However, the increase is in line with NBP analyses. Consumer inflation in August was 16.1%  on an annual basis. Compared to the previous month, the prices of consumer goods and services increased by 0.8 percent.

What are interest rates?

NBP interest rates are a tool with which the Central Bank influences the cost of capital on the interbank market and the interest rates on loans and deposits at commercial banks. By raising interest rates, the Monetary Policy Council increases the cost of loans, thus reducing lending and making less money in the economy. 

This, at least in theory, should lower inflation. The matter is not that simple, however, because the tasks of the Monetary Policy Council and the Central Bank include not only maintaining the value of money, but also stimulating economic development. Subsequent increases on the one hand inhibit the growth of prices, and on the other hand cool down the economy.

Source: Wprost

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I am from Denmark but have lived and done business in Poland since the Spring in 2008. I have had a webshop with Scandinavian designed products, and event company in Poland. Today I am a business consultant and b2b IT consultant plus sales agent on the Polish market. I have lived/done business in 3 different cities and in 3 different regions (voivodeships) in Poland. My business network and knowledge about doing business in Poland and about Poland are therefore very big.

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