Good news for borrowers. They were waiting for this decision

ByValeska
Adam Glapiński

The Monetary Policy Council did not change the interest rates for the 14th time in a row. The statements of the members of the committee show that a reduction is not expected this year.

The two-day meeting of the Monetary Policy Council (MPC) ended on Thursday. The committee decided to leave the NBP interest rates unchanged:

  • reference rate 5.75% per annum;

  • lombard rate 6.25% per annum;

  • deposit rate 5.25% per annum;

  • rediscount rate of bills of exchange 5.80% per annum;

  • bill of exchange discount rate 5.85% per annum.

The Monetary Policy Council did not change interest rates again

The Council did not change the interest rates for the 14th time in a row. On the one hand, this is good news for borrowers, because an increase in rates would mean a higher loan installment. On the other hand, the Monetary Policy Council was able to surprise with its decision to cut rates, which took place in the fall of 2023. In the middle of last year, there were signs that further cuts would be possible this spring. During his last speech, the president of the National Bank of Poland (NBP) and the chairman of the Monetary Policy Council, Adam Glapiński, made it clear that not only will the reductions not take place in the spring, but they should not be expected throughout 2025.

MPC member Ludwik Kotecki in a recent interview for Money.pl assessed that there will be little room to reduce interest rates this year. – It will be a maximum of 0.5 to 1 percentage point. – said Kotecki.

According to him, the discussion on rate cuts in the Monetary Policy Council may start seriously in March, which does not mean that a quick reduction should be expected. – But in March we will have a new inflation projection. We will also be able to assess better than today to what extent all these administrative price increases, which temporarily raise inflation, translate into the prices of other goods and services. More will be known about Trump’s plans and the situation in the external environment of the Polish economy – said the MPC member.

Let us recall that the latest data from the Central Statistical Office (GUS) show that inflation in December amounted to 4.7%.

Similar Posts