Poland's c. bank hikes key rate 

Banking

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Poland's central bank raised interest rates on Tuesday and suggested further tightening was on the horizon as the country grapples with the fastest price growth in over two decades.

The National Bank of Poland (NBP) raised the main rate by 50 basis points to 2.25%, delivering the fourth hike in as many months.

It was the fourth consecutive increase of the main rate, as the central bank aims to ease inflationary pressures. "Decisions of the Council in the coming months will continue to be aimed at reducing inflation to a level consistent with the NBP inflation target in the medium term," the Monetary Policy Council (MPC) said in a statement.

The country's consumer prices inflation rose to 7.8% in December according to preliminary estimates, the highest reading since December of 2000 and slightly above the central bank's target range of 2.5% plus or minus one percentage point.

Meanwhile, the Lombard rate was set to 2.75% from 2.25%, the deposit rate to 1.75% from 1.25%, and the rediscount rate to 2.3% from 1.8%.

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