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In Poland, its primary goal is to maintain the price level at a stable level, counteract excessively high inflation , and ensure sustainable economic growth . The entity working towards this goal is the National Bank of Poland NBP , or more precisely the Monetary Policy Council in accordance with Article of the Constitution of the Republic of Poland . Price stability is defined as the consumer price index for the euro area, which does not exceed . % in the medium term with a possibility of deviations by percentage point.Obvious phenomena that contradict this state may include, for example, inflation or deflation. Therefore, a stable price level philippines photo editor means that the average prices of goods or services remain at a constant level in the selected time horizon. However, due to the dynamics of economic phenomena, maintaining balance is almost impossible. Therefore, the country's monetary policy should be conducted in such a way as to strive to achieve relative stability.
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The Central Bank accomplishes this task by controlling the money supply the amount of money in circulation . Depending on the situation, it may be reduced sale of government securities, Monetary policy tools Specific tools activities are used for this purpose, which are: Regulating the rate of required reserves - its increase causes a decrease in the supply of money in circulation, and its reduction - an increase in the supply of credits, which increases the amount of money in market circulation. Banks, credit institutions, branches of foreign banks in Poland, and cooperative savings and credit unions are obliged to maintain such reserves.
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