Poland’s central bank will probably raise interest rates at a meeting that starts today to damp inflationary expectations as consumer prices already grow faster than targeted by policy makers.
Poland’s economy grew at the fastest pace in two years in the first quarter as record-low borrowing costs stoked consumer spending and corporate investments.
Poland’s five-year bond yields fell after a report showed manufacturing contracted for a seventh month, bolstering the case for a cut in interest rates at a monetary policy meeting next week.
Polish fixed investments probably improved for the first time this year in the third quarter, economists said.
Poland’s economic growth quickened to the fastest pace in two years as record-low borrowing costs revived investment and consumer spending.
Polish retail-sales growth unexpectedly accelerated for a second month in September, boosting arguments that the European Union’s largest eastern economy should hold off on cutting interest rates.
Polish inflation accelerated in July from a four-month low on faster fuel price growth, according to a survey of economists.
"The lack of inflation is alarming."
- Adam Antoniak on Dec 01, 2014