Economics
Poland Raises Key Rate More Than Expected to 4.5% After Inflation Surge
- Policy makers lifted rates by 100bps, vs forecast for 50bps
- Rate rise is intended to curb inflation expectations
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The Polish central bank gave no indications that it’s ready to pause raising interest rates after lifting the benchmark to the highest level in a decade to fight surging inflation.
In a shock decision, policy makers lifted the reference rate by 1 percentage point to 4.5% on Wednesday and repeated that they’ll do whatever it takes to combat persistently high inflation. The size of the hike eclipsed the predictions of the 31 economists surveyed by Bloomberg and came amid mounting concerns that war in neighboring Ukraine may hurt economic growth.