The National Bank of Poland has kept interest rates on hold WBJ archives

In a decision that surprised the market, the National Bank of Poland's interest-rate setting Monetary Policy Council (RPP) decided to leave its main interest rate unchanged at 4.75 percent on Wednesday.

In recent weeks there had been a parade of macroeconomic figures showing that Poland's economy is in slowdown mode. Just on Monday, Poland's manufacturing PMI reading dropped to 47, its lowest since the height of the crisis in Poland, in July 2009.

Taking the slowdown into account, most analysts had expected the RPP to lower rates by 25 basis points.

After it was announced rates would be left on hold, the złoty gained against major currencies.

The decision was a bigger surprise than the one the RPP made in May, when it decided to raise rates by 25 basis points, Przemysław Kwiecień, chief economist at X-Trade Brokers said in an e-mailed statement in reaction to the decision. He titled his report “The council from another world” referring to the Monetary Policy Council.

“There is now hard evidence [of a slowdown in Poland],” he wrote, “but the council continues to wait.”