Polish central bank raises interest rate as prices surge

WARSAW, Poland (AP) — Poland’s central bank on Wednesday made its second interest rate hike in as many months as consumer prices surge.

The National Bank of Poland raised the rate to 1.25%, indicating that it intends to move more forcefully against rising prices after facing criticism for not acting soon enough.

The move “suggests to us that it is taking the fight against inflation much more seriously than we had thought,” Capital Economics said in a note.

It comes after Eurostat, the European Union’s statistics agency, said Friday that Poland’s yearly inflation rate hit 6.8% in October. That’s among the highest in the 27-member European Union.

Inflation has been spiking worldwide in recent months because of soaring energy prices and pent-up demand during the pandemic recovery.

In Poland, consumer prices appear set to rise even further, with a government minister saying recently that inflation could hit 8% by year’s end.

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