NBP keeps bank rates unchanged

The Polish Monetary Policy Council decided to keep the bank rates unchanged. The central bank governor, Marek Belka says outgoing government's 2016 budget bill leaves no scope for further fiscal easing.

"The expenditure rule significantly limits potential, additional expenditure in 2016. The new government will start by implementing new taxes. These will include a tax on either banking assets or on all financial transactions, and a 2% retail sales tax on large retailers", says Societe Generale in a research note. 

Some representatives from the new ruling party Law & Justice (PiS) have suggested that deficit could be higher than expected by several billion PLN.