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Polish c. bank raises interest rate as prices surge 

Banking

Photo by ratmaner/Shutterstock.com

The National Bank of Poland raised its benchmark reference rate by 75 basis points to 1.25% on Wednesday. It was the second consecutive increase of the main rate, as the central bank aims to ease inflationary pressure.

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

At the same time, the Lombard rate was set to 1.75% from 1%, the deposit rate to 0.75% from 0%, and the rediscount rate to 1.3% from 0.51%.

The country's consumer price inflation is expected to have risen 6.8% in October, according to preliminary estimates, the highest reading since 2001 and well above the central bank's target range of 2.5% plus or minus one percentage point.

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