Poland Central Bank Keeps Rates Steady Again

(RTTNews) - Poland's central bank on Wednesday left its key interest rates unchanged as recent upbeat economic data likely offset deflationary concerns.

The Monetary Policy Council of the National Bank of Poland maintained the key reference rate at 2.00 percent, in line with economists' expectations.

The bank last lowered the rate by 50 basis points in October.

The lombard rate was kept at 3 percent and the deposit rate was held steady at 1 percent. The rediscount rate was retained at 2.25 percent.

The Monetary Policy Council is set to hold a press conference later today.

The country's economy expanded 3.3 percent in 2014, which was the fastest pace in three years. Manufacturing growth continued in December and retail sales rebounded.

Meanwhile, core inflation rose for the first time in three months in December, while overall consumer prices kept declining.

"With the economy still in deflation, the case for policy easing is building and, for now, we think the MPC will lower the benchmark rate by 25bp next month," Capital Economics economist William Jackson said.

"Improvements in December's activity data and, possibly, concerns about currency weakness against the Swiss franc probably tipped the balance on the Council in favor of standing pat today."