Saturday 20 January 2018

Polish borrowing rate cut to 2.75pc in stimulus move

POLAND'S central bank has cut borrowing costs to a record low as the EU's largest eastern economy grapples with its worst slowdown in four years.

POLAND'S central bank has cut borrowing costs to a record low as the EU's largest eastern economy grapples with its worst slowdown in four years.

Its 10-person Monetary Policy Council lowered the benchmark borrowing rate by a quarter-point to 2.75pc. The Polish government, like central bankers across eastern Europe, is seeking to stimulate the country's ailing economy, which in early 2013 grew at the slowest rate seen since 2009.

Slow inflation also them leeway to reduce interest rates further. The Polish economy should start to recover "later in the year," depending on the performance of the euro area, the IMF predicts.

The country's Finance Ministry narrowed the country's 2012 budget deficit target to 3.9pc of gross domestic product, still missing EU requirements as the economic slowdown curbs tax revenues. It has until the start of October to take measures to get this deficit below the EU's required 3pc.

Irish Independent

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