Poland Signals Higher Rate to Assuage Investors as CPI Rise

Poland’s central bank warned that it will increase interest rates if slowing economic growth fails to curb inflation, which has exceeded the target range for 14 months.

The Narodowy Bank Polski in Warsaw yesterday kept the benchmark seven-day interest rate at 4.5 percent, the highest since January 2009. Rate setters are “seriously considering” raising borrowing costs, Governor Marek Belka said after the decision was announced.