Monetary Policy Adjustments: Poland's Interest Rate Outlook

Poland's central bank may cut interest rates again this September, possibly marking the last adjustment for 2025, as indicated by Monetary Policy Council member Henryk Wnorowski. Despite the unexpected rate cut to 5% in July, concerns over inflation and fiscal policies continue to influence monetary decisions.


Devdiscourse News Desk | Updated: 10-07-2025 13:10 IST | Created: 10-07-2025 13:10 IST
Monetary Policy Adjustments: Poland's Interest Rate Outlook
This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Poland's central bank is contemplating another interest rate cut as early as September, marking it the final adjustment for the year, according to Henryk Wnorowski of the Monetary Policy Council. The unexpected reduction to 5% in July was driven by expected inflation declines.

Governor Adam Glapinski previously indicated that July's rate cut was not the beginning of a policy-easing trend, though he acknowledged a potential follow-up cut. Wnorowski anticipates interest rates with a 'four at the front' by year's end, necessitating a 25-basis-point cut, possibly as soon as September.

Inflation uncertainties persist due to internal factors like the pending status of the energy shield. The government's unresolved bill to extend energy price restrictions until late 2025 adds to fiscal policy concerns. Wnorowski urged caution for future monetary strategies, signaling more rate cuts if inflation trends stabilize.

(With inputs from agencies.)

Give Feedback