Poland raises key interest rate to 4%

April 7, 2011 - 0:0

Poland’s central bank has raised its key interest rate by a quarter of a percentage point to 4 percent, its second increase this year.

The National Bank of Poland’s announcement Tuesday that it was raising its reference rate from 3.75 percent was expected in view of rising inflation.
The bank already had raised rates in January.
Tuesday’s move is expected to strengthen the Polish currency, the zloty, by attracting investors who seek a higher rate of return than is available in the eurozone.
The European Central Bank meets on Thursday and is expected to raise its refinancing rate from the current record low of 1 percent.
(Source: Businessweek.com)