This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Poland Lowers Key Interest Rate To 3.25 Percent

WARSAW, Poland (AP) â¿¿ The National Bank of Poland lowered its key interest rate by half a percentage point to a record low of 3.25 percent on Wednesday, a surprise move given that many economists had predicted a cut of a quarter point and others expected no cut at all.

In explaining its move, the central bank noted that economic data for the fourth quarter of 2012 showed a "marked economic slowdown" and that continued low growth is expected in the early part of this year. The problems it cited include weakening consumer demand, a decline in investments, rising unemployment and subdued lending to households and corporations.

The economy is forecast to expand by 1.2 percent this year, according to the European Commission â¿¿ the lowest rate of growth since 2001.

Overall, the economy has grown fast since Poland threw off communism 23 years ago and built a market economy. Joining the European Union in 2004 only added to momentum, and the country hasn't been in recession in 21 years.

Still, it has not been immune to the financial crisis in Europe.

The Polish central bank faced some criticism last year for moving slowly on interest rate cuts despite decelerating growth. But it has made monthly rate cuts since November, helped in part by a drop in inflation to 1.7 percent, below the official target of 2.5 percent.

Some economists said they were perplexed by the size of the cut.

"This has surprised us a lot, but we believe it is certainly the right thing for the Polish economy, which is likely to be helped by today's move," Danske Bank said in a note.

The central bank said it expects an improvement in economic activity in the coming quarters.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,831.90 +19.71 0.11%
S&P 500 2,090.67 +1.53 0.07%
NASDAQ 5,113.7430 +10.9350 0.21%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs