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Poland central bank holds key rate steady

Poland’s central bank kept its key interest rate unchanged at a record low on Wednesday, as widely expected, Markets Insider reports.

National Bank of Poland headquarters near Swietokrzyska street, Warsaw. Photo by MOZCO Mateusz Szymanski/Shutterstock.com.

The Monetary Policy Council decided to retain the key reference rate at a record low 1.5%, the National Bank of Poland (Narodowy Bank Polski or NBP for short) said in a statement.

The previous change was a half-basis point reduction in March 2015. The Lombard rate was retained at 2.5% and the deposit rate at 0.5%. The rediscount rate was left unchanged at 1.75%.

The central bank has increased its inflation forecast for 2019 to 2.2-2.4% from a previously expected 1.7-2.3% and cut the forecast growth rate to 3.9-4.7% this year from 3.9-5.1%, the NBP said in a statement on Wednesday, Markets Insider adds.