Renewed inflationary pressures forced Poland's central bank Wednesday to announce its second increase in borrowing costs for the year, lifting its benchmark rate by 25 basis points rise in interest rates to 5.5 per cent, according to dpa. The decision by the Warsaw-based monetary authorities came against the backdrop of signs of a pickup in inflation across parts of the Central Europe with consumer prices in Poland hitting 4.3 per cent in January. Wednesday's decision by the Polish central bank was generally in line with analysts9 forecasts and follows six rate increases by the bank in less than a year. Moreover, many analysts believe that the Polish nation bank will be forced to press on with its rate-hiking cycle and to raise the cost of money in Central Europe's biggest economy again, possibly as early as next month.
