Poland's Monetary Council cuts basic reference interest rate

Poland's Monetary Policy Council (RPP) on Wednesday cut the country's basic reference interest rate by 40 bps to 0.10 percent. The National Bank of Poland's lombard rate has been cut to 0.50 percent. The deposit rate has been left at 0.0 percent. The rediscount rate is at 0.11 percent. The RPP's resolution comes into effect on May 29. In its press release on the RPP May 28 meeting, the Council wrote that weaker activity in the global economy, including in Poland, together with lower commodity prices in international markets will contribute to a further fall in inflation. Consequently, there is a risk of inflation falling below the NBP inflation target.