Poland raises interest rates, seeking to tame inflation

By VANESSA GERA
Associated Press

WARSAW, Poland (AP) — Poland’s central bank has unexpectedly raised interest rates as the central European nation faces an accelerating inflation rate that is currently the highest in the European Union. The annual inflation rate registered at 5.8% in September. That’s the highest in two decades. Economists predict that it is likely to accelerate even further in the coming months. The National Bank of Poland raised the reference rate to 0.5% from 0.1%. Wednesday’s decision came as a surprise. Many experts had expected that interest rates wouldn’t go up until next year because many of the reasons for the rising inflation are related to temporary shocks beyond the control of the central bank.