Polish rates stay at 4.5% as expected

Poland's central bank kept interest rates unchanged at its meeting on 25 July. The halt in monetary tightening comes after two rises in the three previous months raised rates to 4.5%.

The decision to pause was widely expected, as analysts thought the central bank would wait for at least a month before any further rise in spite of indications that price pressure is increasing. Borrowing costs in Poland are expected to peak at about 5.5% next year.

Inflation rose above the central bank's 2.25% t