Poland cuts interest rates for second month running
PR dla Zagranicy
Peter Gentle
05.12.2012 14:17
For the second month running, Poland's Monetary Policy Council (MPC) has cut the borrowing rate by 0.25 basis points, in an attempt to stimulate an economy in slowdown.
The decision by the MPC was in line with expectations of 23 economists surveyed by the Polish Press Agency (PAP).
Twenty one of those surveyed expected a cut of 0.25 percentage points, with two economists expecting a 0.50 percent cut in interest rates.
The rate cut – the reference rate is now 4.25 percent – follows a similar 0.25 percentage point cut in November and follows the release of data last Friday which showed that GDP growth in the third quarter this year was at 1.4 percent, year-on-year, compared to 2.3 percent in the second quarter.
In May, the MPC raised the borrowing rate by 0.25 bps following no change in Poland's interest rates for 10 months. (pg)