NBP interest rates down. The MPC explains the reasons for the reduction
The MPC reduced interest rates by 0.25 percentage points The Council’s decision results from the forecasts of falling inflation and stable GDP growth.
The Monetary Policy Council (RPP) has made a key decision today regarding the amount of interest rates. After a two -day meeting, the MPC decided to lower them.
“The Council decided to reduce the reference rate of the National Bank of Poland by 0.25 percentage point, i.e. to 5.00 percent.” – informs the MPC in a message issued on July 2.
Lowering interest rates
As noted by the MPC in a communiqué issued today, in the first quarter of 2025, the annual GDP dynamics in the euro area amounted to 1.5 percent, and in the US 2.0 percent, with inflation, with inflation remaining at levels in accordance with the goals of central banks. In Poland, May brought a positive increase in retail and industrial production, but a decrease in construction and assembly production and a slowdown in salary growth.
“Low unemployment and a high number of working people, although employment in the enterprise sector in May 2025 was lower than a year ago.
The Council points out that CPI inflation in June amounted to 4.1 percent. In July, in July, according to inflation and GDP from the NECMOD model, inflation will gradually fall, and the growth rate of GDP will remain stable, which justifies the adaptation of interest rates by the NBP.
“According to the available forecasts, CPI inflation in the coming months will decrease below the upper limit of deviations from the inflation target of
What next with interest rates?
In the issued announcement, the MPC explains that further decisions in the field of interest rates will depend on the information on the prospects of inflation and economic activity.
“The shape of uncertainty remains the shape of fiscal policy, change in demand pressure and the situation on the labor market in the following quarters and the level of administered energy carriers. The source of uncertainty is also the formation of inflation in the world, including due to changes in the commercial policy of the main hosts,” we read.
As emphasized, the NBP will continue to take all necessary actions to ensure macroeconomic and financial stability, including primarily for the permanent return of inflation to the NBP inflation target in the medium period.
“NBP can use interventions on the currency market,” sums up the MPC.
