Poland's central bank on Wednesday lowered its policy interest rate for the third time in a row to prop up the flagging economy after growth slowed significantly in the third quarter. The decision was in line with economists' expectations.

The National Bank of Poland lowered its benchmark interest rate by 25 basis points to 4 percent, following two similar reductions at the previous meetings. The bank also lowered the rediscount rate by 25 basis points to 4.25 percent, and the deposit rate to 2.5 percent. The lombard rate was slashed by 25 basis points to 5.5 percent.

Poland's annual inflation slowed further to 2.8 percent in November from 3.4 percent in October. Core inflation, excluding volatile items, fell to a 22-month low of 1.7 percent.

The economy expanded 1.4 percent annually in the third quarter, notably slower than second quarter's 2.3 percent growth and first quarter's 3.6 percent expansion. Sequentially, the economy grew by 0.4 percent.

RTTNews