WARSAW, Sept 5 (Reuters) - Poland's central bank cut its main interest rate by 75 basis points to 6.00% on Wednesday, in a shock decision ahead of October elections that sent the zloty currency tumbling against the euro.
The National Bank of Poland (NBP) said it took the decision because it expects inflation to return to target faster than originally expected.
It said that the adjustment to interest rates would be "conducive to meeting the NBP inflation target in the medium term".
NBP Governor Adam Glapinski had previously signalled that a rate cut could come in September if inflation fell to single digits.
"We have already said that it is too early for a rate cut, and certainly such an aggressive rate cut, when the prospects (of a slowdown) in inflation are still distant," said Piotr Bielski, director of the economic analysis department of Santander Bank Polska.
Persons:
Adam Glapinski, Piotr Bielski, J.P, Morgan, Wojciech Paczos, Jaroslaw Kaczynski, Anna Koper, Pawel Florkiewicz, Alan Charlish, Anna Wlodarczak, Karol Badohal, Marc Jones, Justyna Pawlak, Nick Macfie, Sharon Singleton, Marguerita Choy
Organizations:
Reuters, National Bank of Poland, Santander Bank Polska, Cardiff University, Justice, Thomson
Locations:
WARSAW, NBP, Poland, Pawel