Private consumption to mainly drive Polish economy, NBP to stand pat in 2017

Poland’s economy has slowed down slightly as the absorption of EU Structural Funds is not optimal, and investment is decelerating as a result. Therefore, the Polish economy is expected to be mainly driven by private consumption, owing to the persisting fiscal stimuli and decently growing wages, noted KBC Market Research in a research report.

The National Bank of Poland’s official interest rates are expected to stay unchanged throughout this year, even if inflation would rise in 2017. However, inflation is quite unlikely to reach even the central bank’s target rate of 2.5 percent. But market interest rates with longer maturities might be quite volatile in the year, particularly if interest rates on key markets continue to rise, added KBC Market Research.

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