Polish central bank says rates must rise

Published: 18 June 2004 y., Friday
The Polish central bank believes interest rate rises are inevitable due to surging economic growth, a top central banker said Tuesday. Halina Wasilewska-Trenkner, a member of the central bank's board, said economic growth of almost 7 percent year-on-year meant the central bank would have to raise rates to contain inflationary pressures that could result from economic overheating. Last week, official figures showed the Polish economy growing 6.9 percent at a year-on-year rate in the first quarter, way above expectations. Figures released Monday showed inflation at its highest level for two years. Year-on-year inflation in May came in at 3.4 percent. Many economists now expect Polish interest rates to rise by as much as 50 basis points at the central bank's monetary policy meeting later this month. Key interest rates currently stand at 5.25 percent.
Šaltinis: UPI
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