Poland Interest Rate

The National Bank of Poland (NBP) cut its benchmark rate by 25 basis points to 4.5% at its October 7–8 meeting, marking the third consecutive reduction and surprising markets that had expected a pause. The central bank also trimmed the Lombard and deposit rates to 5.00% and 4.00%, respectively. Moderate inflation and slowing wage growth provided room for policy easing. Annual inflation remained stable at 2.9% in September, unchanged from August, within the central bank’s 1.5%–3.5% target range. Wage growth fell to 7.1% in August, below market expectations. Fiscal policy remained relatively prudent, with the government extending the freeze on energy prices until year-end, alleviating cost pressures on households and businesses. Looking ahead, the NBP stated that future policy will depend on incoming inflation and economic data, amid global uncertainties, while reaffirming its commitment to macroeconomic stability and keeping inflation near its medium-term target.