The move by the Polish central bank's rate-setting Monetary Policy Council means that the reference rate will be lowered from 5.75 percent to 5.25 percent, public broadcaster Polish Radio’s IAR news agency reported.
The panel in 2023 slashed key interest rates by a combined 100 basis points.
In 2021 and 2022, it had delivered a string of rate hikes in an effort to contain surging consumer prices.
Poland's central bank chief, Adam Glapiński, said last month that the country's interest rates were likely to fall in "May, June or July" if inflation is kept under control.
He told a news conference at the time that there could be room for "a one-time adjustment" rather than the start of a series of rate cuts.
He told reporters that, in an optimistic scenario, there could be two rate cuts this year, each by 50 basis points.
Glapiński predicted that inflation would continue to decline in the coming months.
He declared that, if economic conditions remain favourable, interest rates could ultimately drop to around 3.5 percent next year, state news agency PAP reported.
Inflation in Poland stood at 4.2 percent in year-on-year terms in April, according to a flash estimate by the country’s statistics office.
The Polish central bank predicted in its latest Inflation Report, released on March 14, that inflation would average at 4.9 percent in 2025, followed by 3.4 percent in 2026 and 2.5 percent in 2027.
According to a set of macroeconomic targets adopted by the government last month, inflation is projected to average 3.8 percent next year, followed by 3 percent in 2027, 2.8 percent in 2028 and 2.5 percent in 2029.
(gs)
Source: IAR, PAP