Poland’s Monetary Policy Council (MPC) kept interest rates unchanged due to uncertainty about future economic policies and their possible influence on inflation, the council said in a statement released following its November sitting.

The MPC, the Central Bank’s (NBP) rate-setting body, left the reference rate at 5.75 percent on Wednesday, while analysts had expected it would cut interest rates by 25 bps.

“Considering the adjustment in the NBP interest rates introduced in recent months, together with uncertainty about the future course of fiscal and regulatory policies and their impact on inflation, the Council decided to keep the NBP interest rates unchanged,” the MPC wrote in its statement.

“The Council judges that the current level of the NBP interest rates is conducive to meeting the NBP inflation target in the medium term,” it continued. 

They also reiterated that a decrease in inflation would be quicker if supported by an appreciation of the zloty exchange rate.

“Further decisions by the Council will depend on incoming information regarding the prospects for inflation and economic activity, as the NBP will continue to take all necessary measures in order to ensure macroeconomic and financial stability, including, above all, to bring inflation down to the NBP inflation target in the medium term,” the statement continued. 

The Central Bank has set 2.5 percent as its inflation target.

The bank has also signalled that it may intervene in the foreign exchange market.