Skip to comments.Poland Central Bank Follows Other Central Banks And Lowers Rates, IKEA Removes Almond Cakes
Posted on 03/06/2013 8:44:42 AM PST by whitedog57
Another sign that Europe is NOT improving is the panic signal from Poland.
March 6 Polands central bank cut its main interest rate for a fifth month as policy makers seek to avert the worst economic slowdown in 12 years after consumer spending plunged amid Europes debt crisis. The Narodowy Bank Polski lowered the benchmark seven-day reference rate by 50 basis points to 3.25 percent today.
The European Unions largest eastern economy will expand 1.2 percent this year, the weakest pace since 2001, as domestic demand falters and a euro-area recession hampers exports, according to EU forecasts. The NBP has cut borrowing costs since November and Governor Marek Belka said last month a gradual recovery was probably under way.
But when compared to the Fed Funds Rate, the Poles are Pikers.
Polands real GDP growth remains below US real GDP growth.
The ten year Polish sovereign bond yields remain low by historic standards.
At least Poland isnt having problems like Swedens IKEA restaurants where horse meat was discovered in their Swedish meatballs and now bacteria associated with feces was found in their almond cakes.
Hmmm. I wonder if they will mix their Swedish Horsemeatballs with Almond CrapCakes to make a new dish: Horsesh*t!
I’ve seen some surprisingly nice sales and deals here in the eastern Czech Republic near the Polish border. Consumer demand is down here as well, and growth for the CR has been forecast to be fairly anemic this year as well.
Czech Republic, like Poland, is export-driven, mostly to the rest of the EU. There’s tourism, of course, but that’s not enough to offset a major slowdown.
I forgot to add that the Czech National Bank will likely follow Poland’s lead in cutting interest rates/devaluing in an effort to spur consumer spending.
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