Monetary Policy Council raises interest rates for the 4th time

Photo: PAP/Darek Delmanowicz

On Tuesday, the Monetary Policy Council (RPP) raised all interest rates by 50 baseline percentage points. The reference rate, the main NBP rate, increased from 1.75 percent to 2.25 percent. The decision comes into force on January 5.

In line with Tuesday's RPP decision, the reference rate was increased to 2.25 percent, the lombard rate to 2.75 percent, the deposit rate to 1.75 percent, the rediscount rate to 2.3 percent, and the discount rate to 2.35 percent.

The RPP previously decided at the beginning of December to raise the interests by 50 baseline percentage points. In December the reference rate went up to 1.75 percent, the lombard rate increased to 2.25 percent, the deposit rate up to 1.25 percent, the rediscounting bills of exchange to 1.8 percent, and the discounting bills of exchange up to 1.85 percent.

This is already the fourth increase in the NBP interest rates in the last four months.

“The decisions of the Council in the coming months will still be aimed at bringing inflation down to a level consistent with the NBP's inflation target in the medium term,” the EPP informed.

"The decisions of the Council in the coming months will still be aimed at lowering inflation to the level consistent with the NBP inflation target in the medium term, with economic after the global pandemic shock,” the Monetary Policy Council wrote in Tuesday's announcement.

As reported, "the Council's assessment of the extent of the severe monetary tightening required for the fulfillment of the above-mentioned purposes, will take into account the inconvenient information regarding the outlook for inflation and economic growth, including the outlook of the situation and the market.”

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