English Section

Poland cuts interest rates by 25 basis points

04.10.2023 15:30
Poland's central bank on Wednesday trimmed key interest rates by a further 25 basis points, amid signs of subsiding inflation.
The Warsaw headquarters of the National Bank of Poland (NBP).
The Warsaw headquarters of the National Bank of Poland (NBP).Photo: PAP/Tomasz Gzell

The move by the Polish central bank's rate-setting Monetary Policy Council means that the reference rate will be lowered from 6 percent to 5.75 percent, public broadcaster Polish Radio’s IAR news agency reported.

The panel last month cut key interest rates by 75 basis points, in the first change to the country's interest rate regime in a year.

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

Inflation in Poland stood at 8.2 percent last month, down from 10.1 percent in August, 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.


Source: IAR, PAP