Poland Central Bank Keeps Rates Unchanged

Poland's central bank held interest rates steady on Wednesday, which was expected as policy makers monitor the strength of a rebounding economy.

The bank's Monetary Policy Council said it was keeping its benchmark seven-day intervention rate at 4 percent, an all-time low. It gave no immediate explanation for its decision.

Poland currently enjoys an annual inflation rate of just 0.7 percent, the lowest in the European Union, suggesting the bank has little need of high borrowing costs to curb price pressure.

However, figures released earlier Wednesday showed the economy grew at an annual rate of 5.2 percent in the first quarter, suggesting inflation could increase.

Economists had anticipated that the bank would leave rates unchanged for now, and many see no change in borrowing costs until the end of the year.

Source:The Associated Press