21:59 7 May 2025
Złoty may weaken slightly as further rate cuts loom
Following the National Bank of Poland’s decision to cut interest rates by 50 basis points, analysts expect the złoty to weaken moderately amid anticipation of further easing. Michał Stajniak, deputy director of analysis at XTB, told ISBnews the reduction aligns with market expectations and benefits borrowers—cutting monthly loan installments by around PLN 150 on a typical mortgage.
With inflation easing to 4.2% in April, further rate cuts—possibly in July—are increasingly likely, Stajniak noted. NBP President Adam Glapiński previously hinted at a target reference rate of 3.5% by 2026. This could lower mortgage payments by as much as PLN 700.
While the złoty has seen slight depreciation, broader global trends—including expected rate cuts in the eurozone and the U.S.—may limit volatility. Currency levels currently hover above 3.75 for USD/PLN and below 4.30 for EUR/PLN.
Stajniak added that despite potential pressure on bank margins, moderate rate cuts might not heavily affect the sector, as loan volumes could rise.
