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Poland CB Holds Key Interest Rate Unchanged

Poland's central bank left its key interest rate unchanged at a record low on Wednesday, in line with economists' expectations.

The Monetary Policy Council decided to keep the key reference rate at a record low 1.50 percent, the National Bank of Poland said.

The previous change in the reference rate was a half-basis point reduction in March 2015.

The lombard rate was kept at 2.50 percent and the deposit rate at 0.50 percent. The rediscount rate was left unchanged at 1.75 percent.

Headline inflation slowed for a second month in October to 1.7 percent.
Inflation was below the central bank's target of 2.5 percent for the fifth month running.

"Inflation will likely peak in 2019 coinciding with a more pessimistic outlook for eurozone and Polish GDP, which still calls for flat rates," ING Bank economist Rafal Benecki said.

"We stick to our view which assumes no policy change until the end of 2020."
The NBP is set to unveil its latest macroeconomic projections later today at a press conference.

Benecki expects policymakers to adopt a dovish tone.

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