Poland keeps key interest rate steady at 4.75%

    The National Bank of Poland (NBP) held its interest rates unchanged, as expected by most economists.
    The Polish central bank said in a brief statement that it had kept interest rates unchanged and would explain its decision at a press conference.
    The bank's reference rate was kept at 4.75 percent, the lombard rate at 6.25 percent, the deposit rate at 3.25 percent and the rediscount rate at 5.00 percent.
    Economists had expected the bank to keep rates unchanged but signal that it may cut rates later this year due to a slower economy.
    The economy decelerated to a 2.4 percent annual growth rate in the second quarter from 3.5 percent in the first quarter and 4.4 percent in the fourth quarter. The economy grew 4.3 percent in 2011.
    Inflation, as measured by the consumer price index, eased to 4.0 percent in July from 4.3 percent in June. The NBP targets inflation of 2.5 percent, plus/minus one percentage point.

    The central bank surprised most economists by raising rates in May by 25 basis points.

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