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Poland hikes interest rates to tame inflation

08.12.2021 16:30
The Polish central bank’s Monetary Policy Council on Wednesday raised key interest rates for the third time this autumn in a bid to stifle inflation.
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Pixabay LicenseImage by Gerd Altmann from Pixabay

The reference rate went up by 50 basis points to 1.75 percent, from 1.25 percent, amid rising inflation, which hit 7.7 percent last month, state news agency PAP reported.

The move came after central bank chief Adam Glapiński told a conference in October that the time was coming for “a monetary adjustment.”

Polish central bank chief Adam Glapiński. Polish central bank chief Adam Glapiński. Photo: PAP/Wojciech Olkuśnik

Polish Prime Minister Mateusz Morawiecki said at the time he expected “an appropriate response” from the central bank to the fastest price growth in the country in two decades.

Poland's rate-setters in October pushed the reference rate to 0.5 percent from 0.1 percent in the country's first rate hike since 2012. Less than a month later the benchmark rate was increased further to 1.25 percent.

Inflation in Poland stood at 7.7 percent in year-on-year terms in November, hitting the highest level this century, the country’s Central Statistical Office (GUS) said in a flash estimate at the end of last month.

(gs)

Source: PAP