Poland's central bank cuts key interest rate despite double-digit inflation

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Poland's central bank cuts key interest rate despite double-digit inflation
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Poland’s central bank has lowered its key interest rate by 75 basis points despite the country’s double-digit inflation rate.

WARSAW, Poland — Poland’s central bank lowered its key interest rate by 75 basis points on Wednesday despite the country’s double-digit inflation rate. The move prompted concerns by economists that the central bank was providing an economic stimulus to help the governing party ahead of parliamentary elections next month.

Economists had been expecting a rate cut given an election planned for Oct. 15 in which the conservative governing party, Law and Justice, is fighting for an unprecedented third term. The central bank’s governor is an ally of the party and has taken actions in the past to help the government.

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