(MENAFN) Poland's central bank cut its key interest rate by 0.5 percent to a record low of 1.5 percent as it seeks to ward off a dangerous period of falling prices, The Peninsula Qatar reported.
The Polish central bank is under pressure from prolonged deflation, as a relatively limited growth in GDP, lack of wage pressure and a strong zloty certainly encourage a rate cut.
Consumer prices declined 1.3 percent in January, while inflation for 2014 came at zero. Analysts caution that falling prices could see consumers put off purchases to buy goods when they are cheaper.
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