After two other European central banks decided to hold their current interest rates, Czech and Polish banks chose to follow the same way and didn’t change their reference interest rates despite the fact that they both raised the rates at the end of November.
Today both central banks had their scheduled monetary policy meetings at the same time at 2 p.m. GMT. Czech National Bank left rate at 3.50%, National Bank of Poland — at 5.00%. Central banks of Sweden and Hungary held their interest rates earlier too. ECB left the rate unchanged after its last meeting on Devember 6.
The fact that four European central banks decided to follow ECB rate decision may mean only that European Union is facing a hard time both from the side of rising inflation and from the side of the slowing economic growth. Inflation matter is caused by the high oil prices that drive prices for other goods up; GDP output slowdown is attributed to the bank sector turmoil and the
It is very probable now for the other European central banks (Norwegian, Danish, Slovakian, Latvian) to leave their rates unchanged. They will wait for the balance of growth/inflation to move into any direction before taking some preventive actions or continuing general monetary policy.
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