Quarter point interest rate cut likely thanks to EU feel good factor

The National Bank of Poland is expected cut its key interest rate by a quarter point this month as inflation remains in check and the economic recovery is slow. Expectations and good prospects of a "yes" vote in the EU referendum on June 7-8 is a factor encouraging a cut. EU accession is also forecast to help the złoty, which is seen strengthening 3% to the euro after falling to a 40-month low against the single currency in March. Many analysts foresee the Monetary Policy Council (RPP) trimming its main money market intervention rate to 5.50% from 5.75% at its monthly meeting on May 28. (Reuters) A.Z.