Poland Holds Rate Unchanged

Poland Holds Rate Unchanged

Poland’s central bank left its key interest rate unchanged on Wednesday, and said the scale of the possible economic recovery this year, after the coronavirus pandemic, remains uncertain.

The Monetary Policy Council left the reference rate unchanged at 0.10 percent, the National Bank of Poland said. That was in line with economists’ expectations.

The bank said it will continue to purchase government securities and government-guaranteed debt securities on the secondary market, the timing and scale which will depend on the market conditions.

The NBP also said it will offer bill discount credit aimed at refinancing loans granted to enterprises by banks.

“The further course of the pandemic and its impact on the economic situation in Poland and abroad remain the main sources of uncertainty for the economic outlook in Poland,” the bank said.

Growth in economic activity may be limited by the heightened uncertainty and the weaker sentiment of economic agents than before the pandemic that will lead to a significant slowdown in investment growth, the bank added.

The lack of a visible and more durable zloty exchange rate adjustment to the global pandemic shock and to the monetary policy easing introduced by NBP is also expected to slow the economic recovery.

The material has been provided by InstaForex Company – www.instaforex.com