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.