Poland cuts main interest rate to 2 per cent to stimulate domestic demand amid growth slowdown

WARSAW, Poland – Poland’s central bank has lowered its main interest rate by half a percentage point to stimulate the economy and nudge up inflation.

The Monetary Policy Council of the National Bank of Poland said Wednesday it had lowered the reference rate to 2 per cent from 2.5 per cent.

It was the first cut to interest rates since July 2013 and comes at a time of a broader economic slowdown in Europe.

Economists were not expecting such a large cut on Wednesday, but said it would help domestic demand fuel economic growth. The finance ministry expects growth of 3.3 per cent this year, compared with 1.6 per cent last year.