Poland’s Monetary Policy Council is set to hike interest rates, Tuesday, in continuing efforts to stem inflation, say analysts.

The Monetary Policy Council is expected to raise the reference rate by a quarter of a percentage point to reach 4 percent.

Maja Goettig, Chief Economist at BPH Bank told Polish Radio that the measure will help stem inflation  - expected to reach 3.9 percent when data is released for March - saying that the Council’s decision will probably pave the way for future interest rate hikes in the coming months.

Some analysts expect the base rate to reach five percent by year’s end.

Economist Marek Wolos from TMS Brokers has said that the Council’s decision to raise the rate of borrowing will strengthen the Polish zloty, which may be reflected by lower petrol prices.

The Monetary Policy Council is expected to announce its decision at noon, Tuesday. Currently, the reference rate of the National Bank of Poland stands at 3.75 percent. (jb/pg)