Poland's central bank lowered its policy interest rate for the second consecutive month to a new record low as economic growth weakened further in the beginning of the year and inflation continued to fall. The decision matched economists' forecast.

The Monetary Policy Council of the National Bank of Poland lowered its benchmark reference rate to 2.75 percent from 3 percent, following a similar reduction at the previous rate-setting session.

The bank also lowered its rediscount rate by a quarter percent to 3 percent, and the deposit rate to 1.25 percent. The lombard rate was reduced to 4.25 percent.

In recent months, Poland's inflation has hovered around the lowest level in nearly seven years. In April, headline inflation dropped to 0.8 percent from 1 percent in March, and core inflation continued to stay below 1 percent

Poland's economic growth, on an annual basis, weakened to 0.4 percent in the first quarter from 0.7 percent in the fourth quarter, marking the fourth consecutive slowdown.

RTTNews