The Monetary Policy Council surprised the market, lowering interest rates. See how this decision affects loans, savings and the economy.
Surprising decision of the RPP – interest rates down
The Monetary Policy Council (PRP) at the July meeting unexpectedly reduced all interest rates of the National Bank of Poland by 0.25 percentage points. The main reference rate is now 5.00% on an annual basis, which is a significant change after months of stabilisation. Most economists expected to keep their feet at the current level – The decision was therefore a big surprise for the market.
BOOM!
Unexpected #RPP decreased the percentages in Poland by 25 pb (prognosis: no changes) to 5.00%.
From the startling market, the MPC has made itself a success.
After the last "jastrębich" statements of the NBP president, the market shifted the expectations of foot reductions from July to September. pic.twitter.com/vxBRwJ2IPN
According to the MPC Communication, the decision was taken in view of optimistic inflation forecasts. The Council foresees that inflation in the coming months will fall below the upper limit of the NBP inflation target, which has opened up a space to mitigate monetary policy. This is the first such movement in months, despite earlier signals suggesting caution and waiting for fiscal developments in the country.
What does this mean for borrowers and savers?
Credit instalments – when will you feel the change?
Interest rate cuts mean real benefits for those who pay mortgages and consumers with variable interest rates. For example, a typical mortgage loan may fall even by 85 PLN per month, and including earlier this year's reduction – by PLN 257. However, it is worth remembering that interest rate update usually occurs every 3 or 6 months, so the effects will not be immediate.
Savings – lower deposit interest
However, falling interest rates is worse news for savers. Interest rates on deposits and savings accounts will be lower, which will reduce the profits from bank deposits.
Impact on the economy and future prospects
The reduction in rates should stimulate the economy – cheaper credit will encourage companies to investand consumers to spend more. OECD experts predict that further reduction of the feet is possible in subsequent monthsIf inflation is controlled.
Press release after the meeting of the MPC
A meeting of the Monetary Policy Council was held on 1-2 July 2025.
The Council decided to reduce NBP interest rates by 0.25 percentage points to:
the reference rate of 5.00 % on an annual basis;
an annual pawn market rate of 5.50%;
a deposit rate of 4.50% on an annual basis;
a re-discount rate of 5.05% on an annual basis;
a discount rate of 5,10% on an annual basis.
The Resolution of the Monetary Policy Council enters into force on 3 July 2025.
Press release of the Monetary Policy Council meeting on 1-2 July 2025. ⬇https://t.co/m0sckMnXmY
