Poland leaves interest rates unchanged

The Polish central bank's rate-setting Monetary Policy Council left interest rates unchanged on Wednesday, keeping the reference rate at 5.75 percent.

The Warsaw headquarters of the National Bank of Poland (NBP).

Photo: Andrzej Barabasz, CC BY-SA 4.0 , via Wikimedia Commons

The last time the panel changed interest rates was in October 2023.

At the time, the Monetary Policy Council trimmed rates by 25 basis points.

The council slashed key interest rates by a combined 100 basis points in 2023, amid signs of subsiding inflation.

Stopy procentowe w Polsce. Jest decyzja Rady Polityki Pieniężnej#PAPinformacjehttps://t.co/iAx4qBSs0M

— PAP (@PAPinformacje) February 5, 2025

Poland’s central bank chief, Adam Glapiński, has said that the country's interest rates are likely to fall around the middle of 2025 if inflation is kept under control.

Rada Polityki Pieniężnej na lutowym posiedzeniu nie zdecydowała się na obniżkę stóp procentowych.https://t.co/CcdlcLf7X1

— tvp.info 🇵🇱 (@tvp_info) February 5, 2025

Inflation in Poland stood at 4.7 percent in year-on-year terms in December, unchanged from November according to an estimate by the country’s statistics office.

The Polish central bank predicted in its latest Inflation Report, released on November 8, that inflation would average at 3.7 percent in 2024, followed by 5.6 percent in 2025 and 3.4 percent in 2026.

In 2021 and 2022, the Monetary Policy Council delivered a string of rate hikes in an effort to contain surging consumer prices.

(gs)

Source: IAR, PAP, nbp.pl