MPC pauses rate cuts

The Monetary Policy Council left rates unchanged in January, ending a run of five consecutive reductions. After six cuts in 2025 lowered the NBP reference rate from 5.75% to 4%, the pause had been widely signaled as policymakers shifted to a wait-and-see stance.

The Council had several reasons to stand pat. Inflation will be recalculated in February using an updated basket from the Central Statistical Office, giving…