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Another cut borrowing rate expected as Poland's economy slows

PR dla Zagranicy
Peter Gentle 05.11.2014 09:17
As economists expect another cut in Poland's interest rates, Wednesday, the European Commission has cut its forecast for Polish GDP growth in 2014.

photo - Images/East News

"Growth in Poland will slow in the last months of the year due to a decline in exports as demand in the eurozone slows,” the EC says, adding that Poland's economy is also being hit by the Russian embargo on food imports from the EU.

The commission has cut its prediction for Poland's economic growth this year from the 3.2 percent it forecast in May to 3 percent.

GDP growth in the EU as a whole will be 1.3 percent and just 0.8 percent in the eurozone, the EC says.

Meanwhile, economists expect Poland's central bank to cut interest rates by another quarter of a percentage point on Wednesday, after it a slashed a half a percentage point last month.

The new rate base rate is expected to be a record-low 1.75 percent after the Monetary Policy Council meets on Wednesday afternoon.

The IMF said last week the MPC should cut interest rates further in order to bring lower than expected inflation within target. (pg)

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