Continued Deflation May Push Rates Down in Poland
- New Europe Investor
- January 06, 2016
The Central Statistical Office (GUS) in Poland has reported that consumer prices in December were 0.5% lower than in December 2014.
Whilst this was a slight improvement from the 0.6% deflation recorded in November, many analysts are predicting that the central bank may be forced to cut interest rates in the near future.
The figure for December marks 18 months of continued deflation in Poland, and the country’s central bank is reluctant to lower rates further. Interest rates have stood at a record low of 1.5% since March 2015.
Analysts predict the bank will have little choice if global oil prices remain low, sustaining downward pressure on consumer prices.