From 2-3 September 2025. The Monetary Policy Council decided to reduce NBP interest rates by 0.25 percentage points. This reduction will come into force on 4 September and means reducing the cost of money, which is important for both borrowers and the economy.
Decision of the Monetary Policy Council on interest rates
During the meeting, the MPC decided to reduce interest rates to the following levels:
- Reference rate: 4.75% per year
- Lombard rate: 5.25% per year
- Deposit rate: 4.25% per year
- Rediscount rate of bills: 4.80% per year
- Discount rate of bills: 4.85% per year
The resolution will enter into force on 4 September 2025 and full information after the meeting will be published on the same day at 4 p.m. on the NBP website.
What does interest rate reduction mean?
The reduction in interest rates is a signal that the MPC considers that inflation is under control and that monetary policy can be mitigated. This allows loans to become cheaper, which is beneficial for households and businesses. On the other hand, for savers, lower deposit rates.
Reasons for the RPP decision
- Inflation in Poland is relatively low and stable (approximately 2.8% in August 2025), similar to the NBP inflation target (2.5%).
- Economic data show the inhibition of wage growth, which reduces inflationary pressure.
- The RPP wants to avoid excessive increases in real interest rates, thus supporting the economic recovery.
What will be the next steps and market expectations?
Experts predict that the monetary policy mitigation cycle may continue, although there may also be breaks and re-evaluations in the following months. Some economists point to possible further rate reductions in November 2025 when the MPC updates its inflation projections.
The reduction of interest rates by 0.25 percentage points by the Monetary Policy Council is a signal of inflation stabilisation and monetary policy mitigation. This decision can bring relief to borrowers in the form of lower debt handling costs, although it negatively affects the interest rate on savings. Recent data and expert statements show that the MPC will continue to monitor the situation and adapt its actions to changing economic conditions.
