Poland raises interest rates to 4.5 percent

AP News
Posted: Jun 08, 2011 10:20 AM
Poland raises interest rates to 4.5 percent

Poland's central bank on Wednesday raised its key interest rate by a quarter percentage point to 4.5 percent as it tries to curb inflation.

The National Bank of Poland's fourth increase this year was widely anticipated as the price of fuel, food and other items continue to rise. The move also comes amid elevated wage pressures and strong consumer demand.

Despite higher borrowing costs, Poland's economy continues to grow strongly. Economic growth this year is projected to be around 4 percent.

Bank BPH in Warsaw said it expects one more rate hike this year if inflation continues to remain high.