In line with expectations, the MPC cut rates by 25 bps to a record low of 2.75%. In the descriptive part of its statement, the Council confirmed that the slowdown is on-going (including a hardly optimistic growth structure) and that both current inflation and expected future inflation are falling. Most puzzling was the end of the statement, radically different from last month’s document. It states: The Council assesses that monetary policy easing conducted since November 2012 supports economic recovery and limits the risk of inflation running below the NBP target in the medium term. That sentence was later interpreted by M. Belka not as one ending the cycle but rather as reaffirming that it is continued.
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