Economics
Poland Unexpectedly Raises Rates for First Time Since 2012
- Abrupt hawkish shift sees central bank lift benchmark to 0.5%
- None of 29 economists surveyed by Bloomberg predicted the move
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Poland unexpectedly raised borrowing costs for the first time since 2012, caving in to government and investor pressure to tackle soaring inflation that’s already triggered interest-rate hikes across eastern Europe.
The central bank didn’t specify if Wednesday’s increase in the reference rate to 0.5% from a record-low 0.1% was a one-time move or the start of a tightening cycle. Governor Adam Glapinski -- who just a day ago suggested the benchmark could stay on hold even until 2023 -- will hold a news conference on Thursday.