Poland keeps interest rates unchanged to assess the impact of the Iran war on inflation
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Golden Ten Data reported on April 9 that after the US and Iran announced a fragile ceasefire agreement, the Polish central bank kept interest rates unchanged on Thursday as policymakers tried to assess the impact of the Iran war on inflation. Previously, the Polish central bank had cut rates consecutively, bringing borrowing costs to their lowest level in four years. Policymakers took bold action by cutting rates at their March meeting, which came just days after US and Israeli airstrikes against Iran. The Middle East war triggered a surge in oil prices, prompting measures worldwide to protect consumers. The Warsaw government capped fuel prices at the end of last month after Poland's inflation rate accelerated from 2.1% in February to 3%. This may persuade the central bank to adopt a wait-and-see stance in response to future policy moves.
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