MNI NBP WATCH: Poland CenBank Lowers Rates By Quarter Point

The National Bank of Poland cut interest rates by 25 basis points as expected on Wednesday to leave the reference rate at 4.75%, with an almost unchanged statement offering little in the way of forward guidance ahead of Governor Adam Glapinski’s press conference later this week. (See MNI EM NBP WATCH: Slower Polish Price Growth Means 25Bp Cut Seen)

Annual CPI inflation fell from 3.1% in July to 2.8% in August, and while service price growth remained elevated “it can be estimated that in August 2025 inflation net of food and energy prices declined,” the NBP reported.

Second-quarter GDP grew by 3.4% in annual terms, with the improvement over Q1’s 3.2% thanks largely to a rise in consumption, notably retail sales. Wage growth remained strong despite a slight decline.

“Taking into account inflation developments, in the Council’s assessment, it became justified to adjust the level of the NBP interest rates,” the Bank said, although fiscal policy, consumption demand recovery and elevated wage growth “remain risk factors for low inflation.”