Poland central bank rates to remain unchanged till Q1 2016

Interest rates were held flat for the fourth month in a row by the Poland MPC. Governor Marek Belka said that "the likelihood of any changes to the level of interest is low." Belka doesn't expect the MPC to revert to an easing cycle. 

He also said that markets are "largely right" in pricing in rate hikes in H2 2016. Central bank rates to remain unchanged until at least Q1 next year. The council adjusted the most important sentence in its press statement. 

It wrote: "annual price growth will remain negative in the coming months, mainly due to the earlier sharp fall in commodity prices. At the same time, expected stable economic growth, amidst recovery in the euro area and a healthy domestic labour market, reduces the risk of inflation remaining below target in the medium term."

The council changed the phrase "expected gradual acceleration of economic growth" to "expected stable economic growth". This minor change is not important in terms of monetary policy; it merely reflects recent projections for economic activity, says Societe Generale.