Poland’s Central Bank Raises Interest Rate

The Narodowy Bank Polski (NBP), Poland’s central bank, raised its benchmark interest rate by 50bps as expected to 1.75% on Wednesday.

The central bank also raised each of its other interest rates by 50bps; the discount rate on bills of exchange was lifted to 1.85% from 1.35%, the Lombard rate was lifted to 2.25% from 1.75%, while the deposit rate was lifted from 0.75% to 1.25%.

Central European currencies eased on Wednesday, with Hungary’s forint unmoved by a rise in inflation to a 14-year high and Poland’s interest rate hike which was expected by investors and traders.

Central banks around the region have hiked interest rates in recent months to battle surging price growth fueled by both external and domestic factors. The zloty traded down 0.2% on the day at 4.593 to the Euro.