Polish central bank stuns with 75 bps rate cut, zloty plunges

Polish central bank cuts main interest rate by 75 basis points to 6.00%, exceeding expectations and sending the zloty plunging.
The unexpected size of the cut shocked economists who warned of inflationary risks.
The central bank said the cut will help return inflation to target faster than expected.
Some suggest political considerations may have influenced the decision with elections upcoming.
The move reverses the central bank's previous rate hiking cycle aimed at fighting high inflation.

reuters.com

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Posted 9/7/2023, 1:10:00 AM