Summary Box: Poland holds interest rate at 4.5 pct

AP News
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Posted: Dec 07, 2011 12:18 PM
Summary Box: Poland holds interest rate at 4.5 pct

NO CHANGE: Poland's central bank kept its main interest rate unchanged at 4.5 percent Wednesday as it balances a worsening economic outlook with high inflation.

THE BACKDROP: Economists note the decision came as the outlook for the Polish economy has worsened due to the crisis in the 17-country eurozone.

BALANCING ACT: The rate is at its highest since 2009. A slowing economy would give the bank reason to lower rates to stimulate borrowing, but it is held back from doing so because that could add to inflation that stood at 4.3 percent in October.