PKO: another interest rate cut anticipated this week

The Monetary Policy Council (MPC) is expected to continue lowering interest rates by 25 basis points in the upcoming meeting this week, according to analysts at PKO Bank Polski. However, there is also a risk of keeping rates unchanged. The decision will hinge on the medium-term inflation outlook presented in the November projection by the National Bank of Poland (NBP).

With a potential shift in the Council's reaction function, placing less emphasis on GDP growth, the scale and pace of rate cuts in 2024-2025 may be smaller. The deeper-than-expected drop in October's inflation supports further rate reduction, with uncertainties surrounding fiscal policy and price-affecting administrative solutions.

Source: inwestycje.pl