At their Dec 3-4 sitting, members of the Monetary Policy Council (MPC) agreed that interest rates should be kept unchanged at the present meeting, and upheld their view that the current and expected economic situation spoke in favour of keeping interest rates unchanged at least the middle of 2014, according to the "minutes" of the meeting, published by the National Bank of Poland (NBP). MPC maintained "its assessment that gradual economic recovery is likely to continue in the coming quarters, however, inflationary pressures will remain subdued. Therefore, the Council confirmed that it would be justified to maintain interest rates at current levels at least until the end of the first half of 2014." The monetary authorities stressed that the reduction in interest rates in H1 of 2013 and their stabilization in H2 of the year supported the recovery of the domestic economy, return of inflation to the target and stabilisation in the financial markets. In the press release published directly after the December sitting, MPC said that it "maintains its assessment that NBP interest rates should be kept unchanged at least until the end of H1 of 2014." Such a view was first announced in November. At that time, NBP governor and MPC chairman Marek Belka said that this view was shared by the entire Council. After the decision's announcement, bank economists stuck to their expectations that interest rates will be raised probably only in September or Q4 of 2014.
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