Monetary council puts interest rates on hold despite inflation

Rafał Guz/PAP

The Monetary Policy Council (RPP), the Polish central bank's rate-setting body, has kept the reference interest rate at 6.75 percent, it announced on Wednesday, despite rising inflation.

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 decision went against the market consensus of a possible 25-basis-point hike and ignored October's spike in inflation.

The prices of consumer goods and services (Consumer Price Index, CPI) increased by 17.9 percent year on year, and by 1.8 percent month on month in October 2022, according to the Central Statistical Office (GUS).

The RPP left rates unchanged for the second time running following 11 consecutive increases aimed at stemming inflation.