The Monetary Policy Council announced another reduction in NBP interest rates. The change in the reference rate to 4.50% has sparked broad discussions and will affect the budgets of many families.
Decision of the RPP – key data
The Monetary Policy Council decided to reduce all interest rates of the National Bank of Poland by 0.25 percentage points. Here are the new levels:
- Reference rate: 4.50% on an annual basis
- pawnshop rate: 5.00 percent
- Deposit rate: 4.00 percent
- Rediscount rate: 4.55%
- Discount rate: 4.60%
Why did RPP decide to cut?
Economists were divided – half of the analytical teams predicted cutting, half leaving the rates unchanged. The main arguments for lowering the rates:
- Lower inflation than expected
- Inhibition of wage increases
- Extended freezing of energy prices
- Market expectations for cheaper credit
Example: A reduction in interest rates can be compared to a reduction in the price of public transport tickets – both borrowers and entrepreneurs seeking funding benefit.
Impact on borrowers and the economy
Mortgages — lower instalments
Any interest rate reduction shall mean lower costs for persons repaying mortgages. In 2025, the rates dropped by 1 percentage point – for many families it saves even several hundred zlotys per month.
Traffic in the financial market
Interest rate reduction:
- Encourages investment and consumption
- Reduces profits from bank deposits
- It can stimulate economic growth
Changes in interest rates in 2025
| Month | Reduction | Reference rate (per cent) |
|---|---|---|
| May | 0,50 | 5,25 |
| July | 0,25 | 5,00 |
| September | 0,25 | 4,75 |
| October | 0,25 | 4,50 |
What's next? Future Forecasts
The FRA market valued another interest rate reduction by the end of the year. Some experts look forward to stabilisation, others predict a further decline in loan rates, especially with sustained low inflation and moderate economic growth.
Example: This is a bit like the weather forecast – not every expert agrees whether there will be more sun or rain. Similarly, the decisions of the MPC, whose impact on the market can be ambiguous.
The interest rate reduction is a clear signal for borrowers, entrepreneurs and investors. The RPP's decision may stimulate consumption and the credit market, although it also yields less profits for depositors. It is worth following the next meetings of the Council, because their decisions set the direction for the Polish economy.
