Polish Central Bank Keeps Rates High to Support Zloty

Poland’s central bank maintained its key interest rate at the highest level in almost three years as the nation’s currency declined after the European debt crisis deterred investors from buying riskier currencies of emerging markets.

The Narodowy Bank Polski (the National Bank of Poland) left its reference rate at 4.5 percent for the sixth month, the highest level since January 2009. The central bank kept the rate high to support the zloty and to tame the inflation. Poland’s consumer prices grew 4.3 percent from a year ago in October after they rose 3.9 percent in September, being above the bank’s target for 13 months. The zloty has lost 12 percent since the last increase of the interest rates by 1 percentage point in June.

USD/PLN was up from 3.3309 to 3.3517 today, but retreated to 3.3347 as of 16:19 GMT.

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