Poland bank governor says large interest rate cut justified by falling inflation

By VANESSA GERA
Associated Press

WARSAW, Poland (AP) — The governor of Poland’s central bank says its large interest rate cut is justified despite high inflation because prices are stabilizing and the era of high inflation is ending. Adam Glapinski spoke a day after the bank announced that it was cutting interest rates by 75 basis points, a much larger amount than had been expected by economists. Inflation in Poland was 10.1% in August. Glapinski says inflation, which reached over 18% earlier this year, is coming down steadily. He says he expects it to be slightly above 8.5% in September, and that it might fall to 6% by the end of the year.