By Paul Hannon
Poland's central bank on Wednesday kept its key interest rate at 5.75%, in line with expectations, despite a sharp decline in inflation as 2024 began.
The annual rate of inflation fell to 3.9% in January from 6.2% in December, still above the central bank's target, which is a range of one percentage point above or below 2.5%.
Poland's government has extended a freeze on energy prices through the first half of 2024, which likely means that the inflation rate will continue to fall during that period. But there is uncertainty about the outlook for inflation in the second half of the year, when energy prices may be free to rise.
As in much of the rest of Europe, the economy slowed sharply in 2023.
Write to Paul Hannon at paul.hannon@wsj.com
(END) Dow Jones Newswires
03-06-24 0956ET
