Interest rates hit a record low following a further cut by the RPP

This means that interest rates have fallen by 1.75% this year and currently stand at 4.75%. The decision was not a surprise and the price of the bonds increased just after the announcement, while the strength of the złoty grew and the WSE index reached a new record high. Economists regard this move as rather cautious one, with many of them expecting further cuts later this year. It is argued however, that if the slow down of the economy noted in H1 is a short term trend, than further cuts might be very insignificant. Ryszard Petru, Bank BPH chief economist, claims that there is enough room for only a cut of another 0.25 percentage points. It is hard to estimate when this might take place. It is also for the first time in living memory that interest rates are below the level of 5%. (Rzeczpospolita, p. B1; Parkiet, p. 1; Puls Biznesu, p. 1) A.K.