Posted 10/4/2023, 2:52:52 PM
Poland Cuts Interest Rates Again Despite High Inflation, Raising Election Concerns
- Poland's central bank cut interest rates for the second time in a month, lowering the key rate by 0.25 percentage points to 5.75%
- The cut comes despite still-high inflation of 8.2% in September, raising concerns it's a political move ahead of October elections
- Other central banks are increasing rates to fight inflation, but Poland's bank points to dropping inflation as reason for cut
- Rate cuts could ease burden of loan costs for Poles, potentially helping governing conservative Law and Justice party in upcoming parliamentary vote
- Central bank governor is an ally of the ruling party, prompting worries he's taking actions to aid them politically before the election