Poland Interest Rate

The National Bank of Poland kept its benchmark interest rate unchanged at 5.75% in December, marking the 13th consecutive meeting without a change, in line with expectations. The Lombard and deposit rates were also steady at 6.25% and 5.25%, respectively. Preliminary data showed inflation easing to 4.6% in November from 5% in October, marking its first decline in eight months. However, recent statements from the central bank's president and Monetary Policy Council members indicated that discussions on potential rate cuts would commence in March 2025. President Glapinski emphasized that earlier inflation spikes stemmed from government regulatory decisions, such as unfreezing energy prices. Despite the recent decline, inflation remains well above the NBP's target of 2.5% (±1%), with expectations of a temporary rise in early 2025.

The National Bank of Poland held its benchmark interest rate steady at 5.75% in November for the twelfth consecutive meeting, as expected. The Lombard and deposit rates also remained unchanged at 6.25% and 5.25%. Preliminary data showed inflation rising to 5% in October, up from 4.9% in September, reaching a 10-month high amid increased prices of energy carriers and, to a lesser extent, food and beverages. The council noted that inflation is driven by regulatory factors and substantial wage growth, especially in the public sector, and expects Inflation to stay elevated, and that further energy price hikes in early 2025 could add more pressure. However, once the effects of current price pressures fade and wage growth moderates, inflation is projected to approach the NBP’s medium-term target. As for economic growth, data suggest that Q3 GDP growth may have slowed, with retail sales, industrial production, and construction output all lower in September than the previous year.

The National Bank of Poland kept its benchmark interest rate unchanged at 5.75% for the eleventh consecutive meeting in October, in line with market expectations. The Lombard and deposit rates also remained steady at 6.25% and 5.25%, respectively. Preliminary data showed inflation rising to 4.9% in September 2024, up from 4.3% in August, marking a nine-month high and reflecting growing inflationary pressures. The Monetary Policy Council (MPC) noted that while demand pressures are weak and a stronger zloty is helping contain price increases, wage growth and energy costs continue to fuel inflation. The MPC expects inflation to gradually return to the NBP's target, though fiscal policies, labor market conditions, and energy prices present ongoing risks.