WSE in the green as central banks cut rates

The Warsaw Stock Exchange enjoyed positive trading in the early afternoon, as European central banks kicked off another wave of interest rate cuts.

At midday the WIG20 rose 2.1 percent, while on Wednesday it dropped 2.15 percent. "The rise is due to the positive attitude on the European bourses. All it takes is relative calm on the European indexes and the indexes in Warsaw increase," Mirosław Saj, analyst at BM DnB Nord told Reuters.

The market was expecting interest rate cuts and at midday, the Bank of England cut rates by another percentage point to 2 percent, the lowest since the Bank was founded. While, the European Central Bank also cut rates by 75 basis points to 2.5 percent.

Meanwhile, Monetary Policy Council member Mirosław Pietrewicz said that Poland's central bank may cut its interest rate in December. He told Gazeta Prawna that the rate may be cut by a total of 175 basis points to 4 percent by the end of next year. (AO)

Source: Reuters