East Europe’s Inflation Laggard Stays Course With Rate Pause
- Polish central bank holds rates unchanged, in line with survey
- Inflation is below target even after surprise December pickup
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The monetary policy that served Poland well during its record stretch of price declines is proving equally handy now that reflation spreads to the European Union’s biggest eastern economy.
While lagging behind regional peers, price growth is rebounding faster than forecast in Poland after 28 months of deflation ended in November. Still, it remains below the 1.5 percent lower end of the central bank’s target range, and that’s giving policy makers the confidence to stick with their longest interest-rate pause in almost two decades.