WARSAW, June 4 (Xinhua) -- The National Bank of Poland (NBP) decided on Wednesday to keep all interest rates unchanged, defying market expectations amid disinflationary trends.
The NBP announced in a statement that the Monetary Policy Council (RPP) made the decision at the conclusion of its meeting. The key reference rate remains at 5.25 percent. The lombard rate stands at 5.75 percent, the deposit rate at 4.75 percent, the rediscount rate at 5.30 percent, and the discount rate at 5.35 percent.
This move follows a rate cut in early May, when the central bank lowered the reference rate by 50 basis points from 5.75 percent to 5.25 percent.
The move surprised financial markets, which had widely anticipated a further 25 basis point cut. Analysts at Bank Pekao remarked on platform X: "Markets were ready for a rate cut, but the RPP decided to hold. Once again, the
NBP president's press conferences have proven to be the best forward guidance for the month ahead."
Andrzej Gwizdz, an analyst at investment platform Portu, commented that the decision was consistent with earlier guidance that the May cut was a one-off adjustment.
"In the coming months, macroeconomic data and the July inflation projection will be key. In a disinflationary environment, characterized by falling commodity prices, a weakening U.S. dollar, and the Energy Regulatory Office's decision to lower gas tariffs for households, further rate cuts are possible as early as the third quarter," he said. ■