Poland raises rates to 5.5% in surprise move

The National Bank of Poland has voted to raise rates unexpectedly by a quarter point.

Most analysts thought the central bank would hold rates at 5.25% but the monetary policy council backed a rise on fears that inflation would remain above the 2.5% target in the medium term.

Annual inflation hit 4.3% in January and is expected to remain at a similar level in the coming months.

The council said that business and investment factors, along with the predicted global economic slowdown, could curb