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Poland’s Monetary Policy Council Unexpectedly Cuts Interest Rates
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In an unexpected move, Poland’s Monetary Policy Council (MPC) has decided to cut interest rates. This decision will indirectly reduce the costs of loans for consumers and businesses. The rates were reduced by 0.25 percentage points, bringing the reference rate down to 5 percent. This action signals a shift in monetary policy and could have important implications for the Polish economy.
New NBP Interest Rates
The Council decided to reduce the NBP interest rates by 0.25 percentage points to the following levels:
- Reference rate: 5.00 percent on an annual basis.
- Lombard rate: 5.50 percent on an annual basis.
- Deposit rate: 4.50 percent on an annual basis.
- Redskonta rate of bills of exchange: 5.05 percent on an annual basis.
- Discount rate of bills of exchange: 5.10 percent on an annual basis.
Resolution Effective Date
The resolution of the Monetary Policy Council enters into force on July 3, 2025.
Expert Predictions
This scenario was previously suggested by MPP member Ludwik Kotecki, who predicted a reduction decision in July. He made this prediction in mid-June. However, achieving this change required nine votes in the council. Kotecki’s statement offered an optimistic outlook.
Market Reactions
The Forward (FRA) contracts market indicated a chance for a reduction on July Wednesday. From June 26,the records of 9-month contracts on WIBOR 3M fell from 4.7 to 4.61 percent. This did not guarantee market certainty, but it did suggest a possible reduction scenario. For further insights into market trends, consult reputable financial news sources like Reuters.
Disclaimer: This article provides general financial information and should not be considered financial advice. Consult with a qualified financial advisor for personalized guidance.
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