Polish Central Bank Holds Rates, Points to Slowdown Ahead

The National Bank of Poland (NBP) kept its main interest rate on hold at 6.75% on Wednesday, it said, opting to leave borrowing costs unchanged despite soaring inflation as it warned of an economic slowdown in the coming months, Reuters reported. With regional peers finishing monetary tightening cycles, Polish policymakers had also signaled that the end of rate hikes was near. However, with inflation rising to 17.2% in September, the highest since 1997, most economists had predicted that the cost of credit would continue to rise. "The Council assessed, that the hitherto significant monetary policy tightening by NBP... will contribute to curbing demand growth in the Polish economy, which will support a decline in inflation in Poland towards the NBP inflation target," the banks said in a statement. Read more.