In line with expectations, Poland’s rate-setting Monetary Policy Council (RPP) decided to keep interest rates unchanged last week.

Poland’s headline rate will remain at 4.5 percent, as fears of weakening economic expansion eclipse those of spiraling price growth.

Source: National Bank of Poland

The Council also said it still “does not rule out the possibility of further monetary policy adjustment, should the outlook for inflation returning to the target deteriorate.”

At the same time, National Bank of Poland president Marek Belka stressed once again that the balance of risks for future inflation has changed due to a deterioration in economic prospects in Poland and worldwide.

BZ WBK said in a research note that it was not changing its expectations that the NBP rates will remain unchanged in the coming months, even though the tone of the subsequent statements could be eased further.

November’s RPP meeting will reveal much, the bank said, given the publication of new NBP projection of GDP and CPI.