WARSAW, Poland (AP) — Poland's central bank lowered its interest rates by 75 basis points on Wednesday despite the country's double-digit inflation rate. The National Bank of Poland's monetary policy council announced that it was cutting the reference rate from 6.75% to 6%, and other interest rates by the same amount. Economists had been expecting a rate cut, but not such a large one. In conditions of high inflation, central banks tend to raise interest rates, a move that can help bring down inflation over time by discouraging consumption. Interest rate cuts, on the other hand, make financing cheaper and tends to encourage consumers and businesses to spend more.

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Persons: Adam Glapinski, Marek Tatala, “, Ryszard Petru, ” Petru Organizations: National Bank of, Law, Justice, Freedom Foundation, Twitter Locations: WARSAW, Poland, National Bank of Poland, Warsaw, Ukraine