Another 0.25 point interest rate cut possible in November

Bank Gospodarstwa Krajowego predicts that the Monetary Policy Council (RPP) in Poland may cut interest rates by another 25 basis points in November and resume reductions in 2024. The bank estimates a total reduction of 150 basis points by the end of 2024, reaching 4.25%. BGK suggests a gradual approach, with 25-point steps, supported by the Council's desire to maintain a 4-6 quarter horizon to reach the inflation target by 1H 2025.

The rationale is to avoid a too rapid approach that could risk worsening economic conditions and labor market dynamics.

Source: inwestycje.pl