Poland cuts interest rates by 25 basis points

Poland’s central bank on Wednesday cut key interest rates by 25 basis points, marking the second adjustment to its monetary policy since October 2023, amid signs of easing inflation.

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

Photo: PAP/Tomasz Gzell

The move by the bank's rate-setting Monetary Policy Council lowers the reference rate from 5.25 percent to 5 percent, public broadcaster Polish Radio’s IAR news agency reported.

Jest decyzja RPP w sprawie stóp procentowych. Zaskoczenie wśród ekonomistów #PAPinformacje https://t.co/Kxl5biCgdU

— PAP (@PAPinformacje) July 2, 2025

In May, the council cut rates by 50 basis points, reducing the reference rate from 5.75 percent to 5.25 percent.

Poland's central bank chief Adam Glapiński at the time cited weakening wage pressures and a slowing economy as justification.

RPP zaskoczyła. Spadną raty kredytówhttps://t.co/vO8L6DfjHd

— PolskieRadio24.pl (@PR24_pl) July 2, 2025

Inflation in Poland stood at 4.1 percent in year-on-year terms in June, according to a flash estimate by the country’s statistics office.

In 2023, the council slashed rates by a total of 100 basis points, following a tightening cycle in 2021 and 2022 aimed at curbing surging consumer prices.

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Source: IAR, PAP