The move by the Polish central bank's rate-setting Monetary Policy Council means that the reference rate will be lowered from 6.75 percent to 6 percent, public broadcaster Polish Radio’s IAR news agency reported.
The panel last year delivered a string of rate hikes in an effort to contain surging consumer prices.
The Monetary Policy Council in September 2022 raised key interest rates for the 11th consecutive time in a bid to tame inflation.
The reference rate at the time went up by 25 basis points to 6.75 percent, from 6.50 percent, amid rising inflation.
Inflation in Poland stood at 10.1 percent last month, down from 10.8 percent in July, according to a flash estimate by the country’s statistics office.
Poland’s central bank chief, Adam Glapiński, this summer renewed his prediction that the Polish economy would avoid a recession in 2023 and that inflation would drop to the single digits by the end of the year.
The Polish central bank said in its latest Inflation Report, released on July 10, that inflation would average at 11.9 percent this year, followed by 5.2 percent in 2024 and 3.6 percent in 2025.
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Source: IAR, PAP
