Central Bank of Poland increased the level of interest rates in the country with twenty-five basis points to a level of 6% on an annual basis.

This has been the highest level of interest rates in the Eastern European country since nearly three year, as the action is predetermined by the fight of the Central Bank against the rising inflation.

This step of the Bank was expected by most investors, Bloomberg indicated.

The trend of increasing interest rates in developing countries becomes ever more frequent as this has already been done by the Central Banks of Brazil, Russia, India, Turkey and South Africa.

Global increase in prices largely caused by the record surging prices of oil, food and fuel, is at the root of the policy undertaken by developing countries, where traditionally inflation is at higher levels than that in developed ones.

In Poland inflation rose to a level of 4.4 percent in May, this was also its highest level since December 2004. It significantly exceeded the average expectations of the Central bank for 2.5% on an annual basis during the last month.

Overall, the economy of Poland is developing very fast, which is another reason for keeping up the inflation in the country. Last year country's economy increased by 6.6% on an annual basis which was the highest growth during the last 10 years.

During this year the growth is expected to slow down to some extent, but still to keep its relatively high levels significantly above those of developed Western countries at 5.5% on an annual basis.