Monetary Policy Council cuts interest rates by 1/4 percent to their lowest level

The intervention interest rate fell to 4% which is the lowest level in history. The decision was announced several hours later than usual. "The late announcement of the decision proves that it was not easy for the Council," commented the chief economist with Kredyt Bank Wojciech Kurylek, "The opinion that low inflation will be maintained in Poland for a longer period prevailed." According to Katarzyna Zajdel-Kurowska, the chief economist with Bank Handlowy, the interest rates cut proves that the Council is not afraid of inflation: "The low level of the price indicator and lack of inflationary pressure were the main arguments for the decrease. It is difficult to predict today whether it was the last cut this year. It will depend on inflation." If price indicators continue to decrease, the probability of further cuts will grow. (Puls Biznesu, p. 11; Parkiet, p. 10) E.B