Polish Central Bank Rates Cut by 25 Basis Points
June 24, 2009
In a move that met analyst expectations, the National Bank of Poland cut its various short-term interest rates by 25 basis points. This was the first cut since March 25, although reserve requirements had been sliced to 3% from 3.5% in May. The key reference rate drops to 3.5% and has in total been reduced by 250 basis points from a peak of 6% prior to the first cut on November 26, 2008. Officials released a statement declaring that despite more CPI inflation now than targeted, a greater probability of sub-target inflation in the medium term exists than is the chance then for above-target inflation. And despite signs that the global recession is lessening and that financial conditions have improved slightly, projected growth and inflation were revised somewhat lower.
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
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