Poland cuts rates by 50 bps to 3.25 pct, exceeding expectations

WARSAW Wed Mar 6, 2013 8:07am EST

WARSAW Mar 6 (Reuters) - Poland's central bank cut interest rates by a bigger-than-expected 50 basis points on Wednesday, signalling that policymakers' concern over rapidly slowing growth had trumped their fear of inflation.

The bank's Monetary Policy Council cut the main rate to 3.25 percent. It was the fifth straight cut since November but the first of that magnitude, and it exceeded analysts' expectations of a quarter point cut.

The bank's Monetary Policy Council (MPC) will hold a news conference to explain its decision and release a new growth and inflation forecast at 1500 GMT. (Reporting by Pawel Florkiewicz)

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