The National Bank of Poland on Wednesday cut its benchmark interest rate by half a percentage point to 2%–more than expected–and cut two other interest rates, with consumer price inflation near zero and tepid economic growth.
Most analysts polled by The Wall Street Journal had expected a cut of 25 basis points to 2.25%.
A reduction to borrowing costs was widely expected after the bank said last month it could cut rates amid signs that the economy wasn’t growing as fast as expected while the Russian-Ukrainian conflict increases uncertainties.
Apart from cutting the main rate, the rates panel also cut its Lombard rate by one percentage point to 3% and the rediscount rate by half a percentage point to 2.25%. It left the deposit rate unchanged at 1%.
The bank is set to release a statement and hold a press conference to discuss the reasons behind its decision at 1400 GMT.
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