Poland's Monetary Policy Council (RPP) on Tuesday cut all interests rates by 75 base points. The central bank (NBP) reference rate will now stand at 4.25 percent.

The RPP decision means that the 7-day intervention rate will be not lower than 4.25 percent, the lombard rate will be not lower than 5.75 percent, the rediscount rate will be not lower than 4.50 percent and the deposit rate not lower than 2.75 percent, according to Polish news agency PAP.

The council decided to cut interest rates as prospects of the economic growth are not good. All reports confirm that the economic growth is growing weaker, RPP said in a statement.

According to RPP, the chances are that inflation will be rather below the mid-term target than above. Future decisions will depend on prospects of economic growth and inflation, RPP said.

Government data shows that industrial production fell 4.4 percent in December compared with the same month of 2007, while unemployment climbed for the second consecutive month to 9.5 percent in December.

Poland's currency, the zloty, has also shed value against the US dollar and the euro in recent months.

(Xinhua News Agency January 28, 2009)