National bank of Poland cuts interest rate by 25 bps to 4%

By Richard Connell

New York, Feb. 25 - The Monetary Council of the Narodowy Bank Polski lowered its reference rate by 25 basis points to 4% at its meeting on Wednesday, according to a news release issued by the bank.

The council of the Polish national bank noted economic growth in Poland has been slowing considerably due to the recession in Poland's major trading partners, as well as the tightening of the bank's lending conditions.

Regarding inflation, the council assessed that although there is a risk of a slight increase in the coming months, the council believes that it will run below the target level in the medium term.

The council reduced the interest rate with a view to increase lending to support the economy's return to a positive growth path.

The reference rate now stands at 4%, the Lombard rate at 5.5%, the deposit rate at 2.5% and the rediscount rate at 4.25%.

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