Poland's Monetary Policy Council (RPP) on Wednesday cut all interests rates by 25 base points, and the central bank (NBP) reference rate now stands at 4.00 percent amid growing signs that the global financial crisis is tightening its grip on the country's economy.

The Council assessed the probability of inflation running below the target in the medium term to be higher than the probability of inflation running above the target, and decided to lower the NBP interest rates, Polish news agency PAP quoted RPP as saying.

The latest data from the Polish government showed that industrial production dropped 14.9 percent in January compared with the same month in 2008.

Poland's currency, the zloty, has fallen recently against the US dollar and the euro. Lower interest rates would tend to weaken the zloty but would also support economic growth and jobs, according to economists.

(Xinhua News Agency February 26, 2009)