Monetary council puts interest rates on hold despite inflation

The rate-setting body's Wednesday decision went against the market consensus of a 25-basis-point hike and ignored September's spike in inflation that surprised economists. Rafał Guz/PAP

The Monetary Policy Council (RPP), the Polish central bank's rate-setting body, unexpectedly broke its rate-hiking cycle despite rising inflation and kept the reference interest rate at 6.75 percent on Wednesday.

The National Bank of Poland's lombard rate remained at 7.25 percent, the rediscount rate at 6.80 percent, and the discount rate at 6.85 percent.

The RPP also left the deposit rate unchanged at 6.25 percent.

The rate-setting body's Wednesday decision went against the market consensus of a 25-basis-point hike and ignored September's spike in inflation that surprised economists.

The prices of consumer goods and services (Consumer Price Index, CPI) increased by 17.2 percent year on year and by 1.6 percent month on month in September 2022, according to the Central Statistical Office (GUS).