Poland Unexpectedly Cuts Rates in Adjustment to Lower Inflation

Poland’s central bank cut interest rates for a fourth time this year, wrong-footing most analysts, in what policymakers said was another adjustment to a softer near-term outlook for inflation.

The Monetary Policy Council reduced its benchmark by 25 basis points to 4.50% on Wednesday. The surprise reduction briefly weakened the zloty and buoyed government bonds, taking the central bank’s cumulative easing to 125 basis points over six months.