The Monetary Policy Council (RPP) announced another cut in National Bank of Poland (NBP) interest rates. The change in the reference rate to 4.50% has sparked wide discussion and will affect the budgets of many families.
RPP decision – key data
The Monetary Policy Council decided to lower all National Bank of Poland interest rates by 0.25 percentage points. The new levels are:
- Reference rate: 4.50% annually
- Lombard rate: 5.00%
- Deposit rate: 4.00%
- Rediscount rate: 4.55%
- Discount rate: 4.60%
Why did the RPP decide to cut rates?
Economists were divided: half of the analytical teams forecast a cut, and half expected rates to stay unchanged. The main arguments for lowering rates were:
- Inflation lower than expected
- Slowing wage growth
- Extended freeze on energy prices
- Market expectations of cheaper credit
Example: Lowering interest rates can be compared to cutting public transport fares – both borrowers and businesses seeking financing benefit.
Effects on borrowers and the economy
Mortgages – lower instalments
Every interest rate cut means lower costs for people repaying mortgages. In 2025, rates have already fallen by 1 percentage point – for many families, this is a saving of up to several hundred zlotys a month.
Movement in the financial market
An interest rate cut:
- Encourages investment and consumption
- Reduces returns on bank deposits
- May stimulate economic growth
Changes in interest rates in 2025
| Month | Cut | Reference rate (percent) |
|---|---|---|
| May | 0.50 | 5.25 |
| July | 0.25 | 5.00 |
| September | 0.25 | 4.75 |
| October | 0.25 | 4.50 |
What next? Forecasts for the future
The FRA market still priced in one more interest rate cut by year-end. Some experts expect stabilisation, while others forecast a further decline in loan rates, especially if inflation remains low and economic growth stays moderate.
Example: It is a bit like a weather forecast – not every expert agrees whether there will be more sunshine or more rain. Similarly, the impact of RPP decisions on the market is sometimes unclear.
An interest rate cut is a clear signal for borrowers, businesses and investors. The Council’s decision may boost consumption and the lending market, although it also brings smaller returns for savers holding deposits. It is worth following the Council’s upcoming meetings, as its decisions set the direction for the Polish economy.
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