By Dow Jones Business News, March 06, 2013, 10:33:00 AM EDT
WARSAW--The National Bank of Poland Wednesday changed its informal bias to neutral Wednesday after delivering a fifth
cut in a row and brought its main rate to 3.25%, the lowest level on record.
The bigger-than-expected cut of half a percentage point complements the easing cycle, the bank said in a statement. It
began cutting rates in November in a cycle that has totaled 1.5 percentage points, a scale the bank called considerable.
The cuts should allow inflation to return to the bank's 2.5% target in the medium term and support the economy, it said.
Analysts had expected a more moderate 0.25-percentage-point cut to the cost of credit.
The European Union's largest emerging economy slowed in 2012 under pressure from a debt crisis crippling its main
trading partner, the euro zone, but also due to rising domestic unemployment and falling public and private investments.
The central bank also downwardly revised the expectation of Poland's consumer price inflation and growth. It now
expects the Polish economy to grow in the range of 0.6%-2.0% in 2013 and 1.4%-3.7% in 2014 compared with a previous
forecast of 0.5%-2.5% for 2013 and 1.1%-3.5% for 2014. The economy should grow 1.9%-4.4% in 2015.
Meanwhile, CPI is expected to slow to the range of 1.3%-1.9% in 2013 and 0.8%-2.4% in 2014 from the earlier view of
1.8%-3.1% in 2013 and 0.7%-2.4% in 2014. In 2015, it's expected at 0.7% to 2.4%.
Poland's CPI fell to 1.7% on the year in January from 2.4% in December, while economic growth slowed to 1.1% in the
last three months of 2012 from 1.4% in the third quarter.
Write to Patryk Wasilewski at firstname.lastname@example.org
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