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WARSAW, Poland (AP) — The National Bank of Poland has lowered its key interest rate by half a percentage point to a record low of 3.25 percent, a surprise move given that many economists had predicted a cut of a quarter point and others expected no cut at all.
The move Wednesday comes as the country has seen its once strong growth slow, with domestic demand down sharply and problems in the eurozone cutting demand for Polish goods.
The central bank faced some criticism last year for moving slowly on interest rate cuts despite decelerating growth. But it has made monthly rate cuts since November, helped in part by a drop in inflation to below the official target.
There are signs that an economic recovery could start in the second quarter.