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Poland's Central Bank Increases Rates
Poland's central bank raised its interest rates by a half percentage point Wednesday, hiking rates for the third straight month as it tries to curb rising inflation.
The National Bank of Poland raised its benchmark 14-day intervention rate from to 6.5 percent from 6 percent - a move that followed a quarter-point rise in July and another half-point increase in June.
When it started raising rates in June after keeping them steady for a year, the bank said it was moving to reduce inflationary pressure caused by strong economic growth and a hike in some prices after Poland entered the European Union on May 1.
Most economists had predicted a quarter-point rise Wednesday. Poland's annual inflation rate rose to 4.6 percent in July from 4.4 percent the previous month - well above the central bank's target range of 1.5 to 3.5 percent.
(Source: http://www.forbes.com/business/feeds/ap/2004/08/25/ap1517955.html) |
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