May is a month in which many borrowers eagerly await the decisions of the Monetary Policy Council (RPP). Will interest rates change, and will loan installments finally fall? Check the latest forecasts!
The next MPC meeting – May 2025
The next decision-making meeting of the Monetary Policy Council (RPP) will take place on 6-7 May 2025. This is when key decisions regarding the level of interest rates in Poland will be made.
Interest rates – will there be changes?
For several months, the main reference rate of the National Bank of Poland has been 5.75%. The RPP recently chose not to change it, stressing that further decisions will depend on the latest data on inflation and the condition of the economy. In March 2025, MPC members indicated that the current level of rates may be too low to effectively bring inflation down to the target in the medium term.
What influences RPP decisions?
- The current level of inflation and its forecasts
- The dynamics of wage growth
- Inflation expectations of consumers and businesses
- The economic situation in the country and worldwide
Will loans finally get cheaper?
Although the NBP reference rate remains unchanged, banks’ loan interest rates are slowly falling. In January 2025, the average loan rate was 7.59% per year, a slight decrease compared to the end of 2024. This is the effect of the stabilization of interest rates and improved conditions in the financial market.
What are the prospects for borrowers?
- If the RPP keeps rates unchanged, loan installments are unlikely to rise.
- The decline in loan interest rates is slow, but noticeable.
- Possible rate cuts may only appear in the second half of the year, if inflation clearly falls.
What to know?
- The next RPP meeting: 6-7 May 2025.
- Interest rates will most likely remain at the current level.
- Loans are getting cheaper very slowly, but the trend is favorable for customers.
- Key decisions depend on inflation and the economic situation.
For borrowers, this means a moment of relief, but they will have to wait longer for significant reductions in installments. It is worth following the upcoming RPP decisions and regularly checking bank offers!
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