In an effort to ease the country’s sagging economy, Poland’s Monetary Policy Council cut interest rates to 4.25 percent. This is the second cut in less than a month: The council slashed interest rates by a quarter of a percentage point in November. The move is expected to stimulate domestic demand. Poland’s inflation rate currently stands at 4 percent, far above the 2.5 percent targeted by the Polish National Bank.
Poland’s economy expanded by 1.4 percent in the third quarter of the year. It is expected to slow to just 2 percent by the end of the year. Last year, it grew by as 4.3 percent.
