Polish central bank cuts interest rates by 25 basis points

Poland’s central bank on Wednesday cut key interest rates by 25 basis points, the fifth adjustment this year, as inflation remains subdued.

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 4.50 percent to 4.25 percent, public broadcaster Polish Radio’s IAR news agency reported.

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The panel previously cut rates by a combined 75 basis points in July, September and October, after a 50-basis-point reduction in May.

Central bank chief Adam Glapiński has cited weakening wage pressures and a slowing economy as reasons for easing policy.

Inflation in Poland stood at 2.8 percent in year-on-year terms in October, 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.

(gs)

Source: IAR, PAP