Polish central bank leaves rates unchanged, as expected

WARSAW: Poland's central bank said on Wednesday it was leaving interest rates unchanged, acting in line with analysts' estimates at the end of a meeting that had been more closely watched than most due to recent talk of cuts.

Central bank governor Adam Glapinski startled economists in December when excerpts of an interview were published in which he said rate cuts were possible in the first quarter. However, in the full text, which appeared in January, he also said that in the baseline scenario rates would stay on hold.

"The full content of the interview with the National Bank of Poland (NBP) governor indicated that stable interest rates is still the most likely scenario. So the result of the January Monetary Policy Council (MPC) meeting is not a surprise," said Piotr Bielski, director of the economic analysis department at Santander Bank Polska.

Poland's benchmark interest rate has been at a record low of 0.1% since rate-setters slashed the cost of borrowing three times by a cumulative 140 basis points during the first wave of the economically damaging COVID-19 pandemic in spring.

Of 21 analysts polled by Reuters, 19 had expected rates to remain on hold.