In an effort to ease the country’s fiscal woes, the Polish Monetary Policy Council cut interest rates by 0.25 percentage points on Wednesday. This is the third cut since November, bringing annual interest rates down to 4 percent. In the latest round of cuts, the council lowered the lombard rate to 5.5 percent, the deposits rate to 2.5 percent and the rediscount rate to 4.25 percent.
“In Poland, incoming data and the economic sentiment indices shows that economic activity remained weak over the recent months,” the Council said in a statement. The construction and industrial sectors reportedly had the weakest output on the domestic market in November, while retail sales ran just slightly above zero.
“We could make more cuts in February, but then we would have to stop and spend March analyzing Poland’s economic performance,” said head of NBP, Marek Belka.
