MNI NBP WATCH: Rate Cut 25Bps To 4% On Lower Inflation Data

The National Bank of Poland cut key interest rates by 25 basis points on Wednesday, to leave the benchmark reference rate at 4%. (See MNI EM NBP WATCH: Dec Meeting Live As Data Suggests 25BP Cut)

"According to the Statistics Poland flash estimate, annual CPI inflation in November 2025 declined to 2.4% (compared to 2.8% in October 2025). Considering the Statistics Poland data, it can be estimated that also inflation net of food and energy prices decreased again," the Bank said in a statement.

"Taking into account inflation developments and its outlook for the subsequent quarters, in the Council’s assessment, it became justified to adjust the level of the NBP interest rates."

Poland's economy is expected to grow by 3.8% this year according to official flash estimates, with October seeing a rise in retail sales, industrial output and construction activity. Wages growth continued to moderate as enterprise sector employment declined further, although pay, energy prices and inflation developments abroad remain potential sources of upside risk to the inflation outlook, the Bank said.