Press conference after the April meeting of the Monetary Policy Council
At its April meeting, the Monetary Policy Council left NBP interest rates unchanged. During the conference, the President of the NBP said that the Council had approved the 2012 NBP financial statements, showing a profit of approx. PLN 5.5 bn.
At its meeting held on 9 and 10 of April 2013, the Monetary Policy Council decided to keep the policy interest rates at their current level. Thus, the reference rate remains at 3.25% in annual terms, the lowest level on record.
The press conference was attended by the NBP President, Prof. Marek Belka, Prof. Adam Glapiński and Dr Andrzej Rzońca. The journalists enquired, among others, about the premises that MPC intends to take into account in its future interest rate decisions. In response to this question Prof. Marek Belka quoted the last sentence of the press release following the MPC meeting: "The Council's decisions in the following months will depend on the assessment of the incoming data with regard to the probability of inflation remaining markedly below the NBP inflation target in the medium term and regarding economic activity."
Prof. Marek Belka observed that the Council’s decisions were not guided by current economic indicators. He emphasised that a possible decline in the inflation index below 1% would not have to entail an automatic response from the Council, who geared their decisions to longer-lasting trends in the real economy.
The President believes that amidst the present, historically low level of interest rates, the Council is refraining from any further cuts, as Poland is one of the few countries that avoided resorting to non-conventional monetary policy methods. The NBP President explained that other central banks, especially those in the developed countries, had no other monetary policy options; yet, these unconventional methods may lead to adverse consequences in the future.
The NBP President also informed that the provisions of the Bill on Establishing the Systemic Risk Council, drawn up by the NBP, had been agreed on with the Ministry of Finance and the Bill should promptly enter the legislative path.
Moreover, the Council approved the 2012 NBP financial statements which showed the NBP’s profit of PLN 5.5 bn. As reminded by President, the law requires that 95% of this amount be transferred to the Treasury.