Poland’s central bank keeps interest rates unchanged

WARSAW, Sept. 4 (Xinhua) — The National Bank of Poland (NBP) decided on Wednesday to maintain its current interest rates.
The decision was made during a two-day meeting of the Monetary Policy Council (RPP) that ended on Wednesday. The RPP kept the reference rate at 5.75 percent, while the lombard rate and deposit rate were maintained at 6.25 percent and 5.25 percent, respectively.
This marks the 10th consecutive decision by the RPP to leave rates unchanged, and the central bank’s choice aligns with market expectations, according to the local daily newspaper, Rzeczpospolita.
In the second quarter of this year, Poland experienced faster-than-expected gross domestic product (GDP) growth and the highest average wage growth of the 21st century. In addition, the government adopted a more expansionary state budget for 2025. These factors contributed to the decision to maintain interest rates, Rzeczpospolita reported.
Michal Stajniak, an analyst at XTB Poland, said that high interest rates remain a significant issue for both current and future borrowers, especially in light of the government’s potential withdrawal from the housing loan subsidy program.
Poland’s last interest rates cut occurred in October 2023, when rates were reduced by 0.25 percentage point. ■