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Economy Sets Tone for Polish Rates as Deflation Worst in Decades

  • Key rate left unchanged for 13th month, in line with forecasts
  • Governor says rates in `certain equilibrium,' no cut imminent
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Poland’s central bank said it’s taking its cue from the economy in leaving borrowing costs unchanged for a 13th month, as the revamped policy council looks past the longest bout of deflation in 60 years to defy expectations for deeper easing.

The 10-member Monetary Policy Council left the seven-day reference rate at a record-low 1.5 percent, matching the predictions of all 34 economists surveyed by Bloomberg. The central bank is no closer to a cut than a month ago, with rates reaching a “certain equilibrium” and no sign of economic risks that could trigger easing, outgoing Governor Marek Belka said after the decision on Wednesday.