Poland bank governor says interest rate cut justified by falling inflation
The governor of Poland’s central bank says its large interest rate cut is justified despite high inflation because prices are stabilizing and the era of high inflation is ending
WARSAW, Poland (AP) — The governor of Poland's central bank said Thursday that its large interest rate cut was justified despite high inflation because prices are stabilizing and the era of high inflation is ending.
Adam Glapinski spoke a day after the bank's monetary council announced that it was cutting interest rates by 75 basis points, a much larger reduction than had been expected by economists.
Critics of Poland’s populist authorities accused Glapinski and members of the bank’s monetary policy council of acting to help the governing party ahead of parliamentary elections next month with a large cut seen by economists as premature. Glapinski is an ally of the party, which is fighting for an unprecedented third term.
The bank cut its reference rate from 6.75% to 6%, and other interest rates by the same amount.
