Poland's central bank probably will lower borrowing costs, the second highest in the European Union, for the first time since June 2003

Poland's central bank probably will lower borrowing costs, the second highest in the European Union, for the first time since June 2003 after inflation slowed, a survey of economists showed. The Monetary Policy Council may cut the benchmark seven-day intervention rate by half a point to 6 percent today, according to the median estimate of 18 economists surveyed by Bloomberg March 18-29. The decision will be announced after noon in Warsaw. The bank must bring interest rates closer to the European Central Bank's 2 percent benchmark rate as Poland seeks to meet terms to adopt the euro by 2010. Consumer prices fell 0.1 percent in February and annual inflation slowed to 3.6 percent, a nine- month low, after the zloty's 24 percent surge against the dollar and 16 percent gain against the euro last year cut import costs. Policy makers have said annual inflation will reach the central bank's target of 2.5 percent as early as the end of June.