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Poland raises interest rates as inflation climbs

03.11.2021 16:30
The Polish central bank’s Monetary Policy Council on Wednesday raised key interest rates for the second time this autumn in a bid to tame inflation.
Polish central bank chief Adam Glapiński.
Polish central bank chief Adam Glapiński.Photo: PAP/Wojciech Olkuśnik

The reference rate went up by 75 basis points to 1.25 percent, from 0.5 percent, amid rising inflation, which hit 6.8 percent last month, state news agency PAP reported.

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

Polish Prime Minister Mateusz Morawiecki said last month 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.

Inflation in Poland stood at 6.8 percent in year-on-year terms in October, hitting the highest level since May 2001, the country’s Central Statistical Office (GUS) said in a flash estimate on Friday.


Source: PAP