Poland’s Monetary Policy Council has left interest rates unchanged, it was announced, Wednesday afternoon, after the two-day monthly meeting at the National Bank of Poland (NBP) in Warsaw.

The benchmark rate remains at 3.75 percent, after a 0.25 percentage point hike in January - the first rise in the borrowing rate in Poland for two and a half years.

Earlier, economy minister and deputy PM Waldemar Pawlak warned that a rate hike could snuff out economic growth.

“Rapid increases in food and oil prices may bring a return of recession. On the other hand, a decision to increase interest rates may quench economic growth,” Pawlak wrote on his blog this morning.

Consumer price inflation in January was recorded at 3.8 percent from 3.1 percent in December, caused by a rise in commodity prices globally.

Earlier, analysts were split on whether another borrowing rate hike was needed to stem price rises. (pg)