Poland's Central Bank Cuts Interest Rate to 3.75%

Poland's Monetary Policy Council (RPP) on Wednesday decided to cut all interests rates by 25 base points and the central bank (NBP) reference rate now stands at 3.75 percent.

In a press release following the meeting, the council said that it has assessed the probability of inflation running below the target in the medium term to be higher than the probability of inflation running above the target and decided to lower the NBP interest rates.

The decline in GDP growth in the fourth quarter of 2008 and fall in industrial output, exports and retail sales in the first months of 2009 confirm that economic growth in Poland has been slowing considerably, Polish news agency PAP quoted RPP as saying.

Wednesday's cut followed five consecutive rate cuts since the end of last year, making NBP's key rate now at its lowest level since 1990.