Current:Home > NewsPoland’s central bank cuts interest rates for the second time in month-InfoLens
Poland’s central bank cuts interest rates for the second time in month
View Date:2024-12-23 16:56:23
WARSAW, Poland (AP) — Poland’s central bank lowered its key interest rate Wednesday, pointing to a drop in inflation despite a still-high rate of 8.2% last month, raising concerns about the cut being a political move.
The National Bank of Poland cut its benchmark rate a quarter of a percentage point to 5.75%. Analysts were expecting it after annual inflation dropped last month from 10.1% in August. Inflation was over 18% earlier this year.
It was the second rate cut since Sept. 9, when the central bank surprisingly slashed rates by three-quarters of a point.
Other central banks worldwide are increasing borrowing costs or holding rates at high levels to tackle inflation stemming from the global economy’s rebound from the COVID-19 pandemic and Russia’s invasion of Ukraine, which spiked food and energy costs.
The European Central Bank hiked its key rate by a quarter-point last month to fight inflation, which has since dropped to a two-year low of 4.3% in the 20 countries using the euro currency. That’s far below Poland’s 8.2% inflation rate.
The interest rate cuts in Poland prompted concerns that the central bank is trying to ease the burden of more expensive loans for many Poles to help the conservative government ahead of Oct. 15 parliamentary elections.
In the elections, the conservative governing party, Law and Justice, is fighting for an unprecedented third term. The central bank’s governor, Adam Glapinski, is an ally of the party and has taken actions in the past to help it.
veryGood! (97)
Related
- Early Black Friday Deals: 70% Off Apple, Dyson, Tarte, Barefoot Dreams, Le Creuset & More + Free Shipping
- Scientists Are Learning More About Fire Tornadoes, The Spinning Funnels Of Flame
- Record-Breaking Flooding In China Has Left Over One Million People Displaced
- A new report shows just how much climate change is killing the world's coral reefs
- Relive Pregnant Megan Fox and Machine Gun Kelly's Achingly Beautiful Romance
- Responders Are Gaining On The Caldor Fire, But Now They've Got New Blazes To Battle
- In Fire Scorched California, Town Aims To Buy The Highest At-Risk Properties
- Secretary of State Antony Blinken says we haven't seen the last act in Russia's Wagner rebellion
- Jason Kelce collaborates with Stevie Nicks for Christmas duet: Hear the song
- Sydney Sweeney's Second Collection With Frankies Bikinis' Sexiest Yet Swimwear Line Is Here
Ranking
- As the transition unfolds, Trump eyes one of his favorite targets: US intelligence
- Computer Models Of Civilization Offer Routes To Ending Global Warming
- Time-lapse images show bus-sized asteroid zoom very close to Earth at over 2,000 mph
- 22 Dead, Many Missing After 17 Inches Of Rain In Tennessee
- Parts of Southern California under quarantine over oriental fruit fly infestation
- The Cast of Schmigadoon! Explains How Their Strong Bond Made For an Elevated Season 2
- You'll Be On The Floor When You Hear Ben Affleck Speaking Fluent Spanish
- Is It Muggy Out? Check The Dew Point!
Recommendation
-
NASCAR Championship race live updates, how to watch: Cup title on the line at Phoenix
-
Thousands Are Racing To Flee A Lake Tahoe Resort City As A Huge Wildfire Spreads
-
Wagner Group's Russia rebellion doesn't speak well for Putin, former U.S. ambassador says
-
Harvard University Will Stop Investing In Fossil Fuels After Years Of Public Pressure
-
UFC 309: Jon Jones vs. Stipe Miocic fight card, odds, how to watch, date
-
Get $151 Worth of Peter Thomas Roth Anti-Aging Skincare for Just $40
-
Congress Is Debating Its Biggest Climate Change Bill Ever. Here's What's At Stake
-
Time-lapse images show bus-sized asteroid zoom very close to Earth at over 2,000 mph