Poland's c. bank hikes key rate
Photo by MOZCO Mateusz Szymanski/Shutterstock.com
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%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.