Wednesday, 05 December 2012 19:08
WARSAW: Poland's central bank announced Wednesday it had cut its key interest rate by a quarter-point to 4.25 percent.
The decision was in line with analysts' forecasts, after inflation dipped and the third quarter saw a significant slowdown in growth.
The Polish National Bank's independent Monetary Policy Council (MPC) cut the benchmark seven-day intervention rate by 25 basis points to 4.25 percent.
Analysts said Wednesday they expected further rate cuts in the months to come.
"We think the economy is set to slow further over the coming months which, ultimately, could trigger larger rate cuts by early next year," Capital Economics analysts said in a statement.
"Either way, we think interest rates will fall further than most seem to expect," they said.
Poland's economy slowed faster than expected in the third quarter, owing primarily to doldrums in neighbouring Germany with some analysts predicting a deeper slump in 2013, but no recession.
The third quarter saw adjusted growth ...