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Polish national bank slashes interest rates as inflation slows

Poland’s central bank lowered its key interest rate Wednesday, pointing to a drop in inflation despite a still-high rate of 8.2% last month, raising concerns about the cut being a political move.

The National Bank of Poland cut its benchmark rate a quarter of a percentage point to 5.75%. Analysts were expecting it after annual inflation dropped last month from 10.1% in August. Inflation was over 18% earlier this year.

It was the second rate cut since Sept. 9, when the central bank surprisingly slashed rates by three-quarters of a point.

Poland’s currency, the zloty, was slightly stronger after the rate cut.

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