On 2-3 September 2025, the Monetary Policy Council (RPP) decided to cut the interest rates of the National Bank of Poland (NBP) by 0.25 percentage points. The cut takes effect on 4 September and lowers the cost of money, which matters both for borrowers and for the economy.
Decision of the Monetary Policy Council on Interest Rates
During the meeting, the RPP decided to lower interest rates to the following levels:
- Reference rate: 4.75% per annum
- Lombard rate: 5.25% per annum
- Deposit rate: 4.25% per annum
- Bill rediscount rate: 4.80% per annum
- Bill discount rate: 4.85% per annum
The resolution takes effect on 4 September 2025, while the full information after the meeting will be published the same day at 4:00 p.m. on the NBP website.
What does the interest rate cut mean?
A cut in interest rates signals that the RPP believes inflation is under control and monetary policy can be eased. As a result, loans may become cheaper, which is beneficial for households and businesses. On the other hand, savers face lower interest rates on deposits.
Reasons Behind the RPP's Decision
- Inflation in Poland is at a relatively low and stable level (around 2.8% in August 2025), close to the NBP’s inflation target (2.5%).
- Economic data show slowing wage growth, which eases inflationary pressure.
- The RPP wants to avoid an excessive rise in real interest rates, thereby supporting economic recovery.
What Are the Next Steps and Market Expectations?
Experts forecast that the monetary easing cycle may continue, although pauses and re-assessments of the inflation situation may also occur in the coming months. Some economists point to possible further rate cuts in November 2025, when the RPP updates its inflation projections.
The 0.25 percentage point cut by the Monetary Policy Council signals stabilizing inflation and easing monetary policy. The decision may bring relief to borrowers in the form of lower debt servicing costs, although it negatively affects savings rates. The latest data and expert opinions indicate that the RPP will continue to monitor the situation and adapt its actions to changing economic conditions.
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