Poland's current interest rates support inflation target in medium term
In the opinion of Poland's Monetary Policy Council, the current level of Poland's central bank NBP interest rates supports achieving the inflation target in the medium term, maintaining rates unchanged after the May cut, while noting continued uncertainty around inflation and economic outlook, the MPC said a statement following its decision-making meeting held on June 3-4.
"The current level of Poland's central bank NBP interest rates supports the achievement of the inflation target in the medium term," the MPC stated.
This phrasing was not included in the May statement when rates were cut by 50 basis points.
RPP highlighted that "factors of uncertainty remain, including the shape of demand pressures and the labour market situation in the coming quarters, the level of administered energy prices, and the shape of fiscal policy. Uncertainty also stems from global inflation developments, including changes in trade policies of major economies."
"n April, annual dynamics of retail sales and industrial production were positive, while construction output declined year-on-year. The labour market remains tight with low unemployment and high employment levels, although employment in the enterprise sector in April 2025 was lower than a year earlier," it added.
"Under these conditions, the Council decided to maintain interest rates at their current levels." it was added.
"NBP will continue to take all necessary actions to ensure macroeconomic and financial stability, including primarily the durable return of inflation to the NBP target in the medium term. NBP may use foreign exchange market interventions," the MPC reaffirmed.
Poland's central bank NBP governor Adam Glapinski will hold a press conference on Thursday, June 5, at 15:00 local time.
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