In a rather unexpected move, the Monetary Policy Council has hiked interest rates for the third time this year.      

Report by Slawek Szefs

The Monetary Policy Council decided to increase interest rates of the National Bank of Poland by a further 0.25 percentage points, thus bringing the reference rate to 4.25 per cent on an annual basis.

In the opinion of most MPC members there exists a strong probability for the annual inflation index to continue at an increased level for the coming months.

Despite all potential adversities the MPC has  maintained, in an official statement, its view that "Poland should join the ERM II and the euro area at the earliest date possible, after meeting the necessary legal, economic and organizational conditions."