Poland’s interest rate setting monetary policy council on Wednesday surprised analysts by lowering the central bank’s benchmark rate by a quarter point to 5.75 per cent, amid increasing signs that the Polish economy is facing a sharp slowdown caused by the global financial crisis.

Most analysts had thought that the council would only begin lowering rates next year. However, recent rate cuts by the Bank of England, the European Central Bank and unexpected cuts by emerging markets like the Czech Republic, Hungary and Turkey increased pressure on Poland to follow suit with a first rate cut since 2006.