Poland unexpectedly cuts interest rates for fourth time this year

Published 08/10/2025, 14:52
Poland unexpectedly cuts interest rates for fourth time this year

Investing.com -- Poland’s central bank reduced interest rates by 25 basis points on Wednesday, marking the fourth cut this year as policymakers signal confidence that inflation will remain under control.

The Monetary Policy Council lowered the reference rate to 4.50% from 4.75%, bringing the total reduction to 125 basis points since May. The decision surprised many market observers, with only 12 out of 30 economists in a Bloomberg survey correctly predicting the move, while the majority expected rates to remain unchanged.

Following the rate cut, the National Bank of Poland (NBP) also adjusted other key rates. The lombard rate was set at 5.00%, the deposit rate at 4.00%, the rediscount rate at 4.55%, and the discount rate on bills of exchange at 4.60%.

The unexpected rate reduction suggests that Poland’s central bank believes price pressures will stay contained despite the country’s accommodative budget policy. The new rates will take effect on October 9, according to the official resolution from the Monetary Policy Council’s meeting held on October 7-8.

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