Polish central bank raises interest rate as prices surge

By VANESSA GERA
Associated Press

WARSAW, Poland (AP) — Poland’s central bank has made its second interest rate hike in as many months as consumer prices surge. The National Bank of Poland raised the rate Wednesday to 1.25%. The move indicates the central bank intends to move more forcefully against rising prices after facing criticism for not acting sooner. The European Union’s statistics agency reported last week that Poland’s yearly inflation rate registered at 6.8% in October. That’s among the highest in the 27-member EU. The head of the National Bank of Poland said Wednesday that he foresees inflation peaking at 7% in January. Inflation has increased worldwide in recent months because of soaring energy prices and pent-up demand during the pandemic recovery.