Poland’s central bank lowered its main interest rate by 25 basis points on Wednesday, marking its fourth rate cut this year. The move signals growing confidence among policymakers that inflation is now under control.
The Monetary Policy Council reduced the reference rate from 4.75% to 4.50%, bringing total cuts since May to 125 basis points. The decision came as a surprise to most analysts, only 12 out of 30 economists in a Bloomberg poll had expected a rate reduction, while the majority thought the bank would hold steady.
Along with the main rate cut, the National Bank of Poland also adjusted several other key rates. The lombard rate is now 5.00%, the deposit rate 4.00%, the rediscount rate 4.55%, and the discount rate on bills of exchange 4.60%.
The unexpected easing suggests that the central bank sees inflationary pressures continuing to cool, even as the government maintains a supportive fiscal stance. The new rates will come into effect on October 9, following the Monetary Policy Council’s meeting earlier this week.
