22:58 4 June 2025
Rates unchanged despite inflation
The Monetary Policy Council (MPC) kept interest rates unchanged on June 4, holding the main reference rate at 5.25%, despite May inflation dropping to 4.1%—just 0.6 percentage points above the upper limit of the National Bank of Poland's (NBP) target range. President Adam Glapiński previously signaled that May’s 0.5 percentage point cut was a one-off, not the start of a new cycle, aligning with market expectations of no change in June.
All other key rates—Lombard (5.75%), deposit (4.75%), rediscount (5.30%), and discount (5.35%)—were also maintained. Borrowers may be disappointed, while banks benefit from continued high margins.
The WIBOR 3M rate stayed near 5.2%, reflecting minimal expectations of a cut. FRA contracts suggest gradual easing, with markets pricing in three 25-basis-point cuts by March 2026, possibly bringing 3M to 4.5% and 6M to 4.2%.
