Poland's MPC member sees autumn as good time for rate cut, total cuts at 125 bps in 2025
The autumn could be a good time for a solid interest rate cut, with rates likely to fall by a total of 125 basis points in 2025, Poland's Monetary Policy Council member Przemyslaw Litwiniuk told an interview with TVN 24.
"If there is no external circumstance that interferes with our outlook, this coming autumn could be a good time to take a solid step in lowering interest rates," Litwiniuk said.
"I think the overall adjustment in the level of interest rates in 2025 could close with a sum of 125 basis points," he added.
In the MPC member's view, certainty on energy prices will be important.
"If the tariffs return to PLN 623, then we will have an increase in the inflation rate, but my view is that commodity prices (including falling service price growth) indicate that we will see similar prices to those currently operating at the frozen level," Litwiniuk assessed.
"Then our estimate of inflation returning to 4.2 [percent] in the last quarter of this year may turn out to be overestimated," he added.
At its decision-making meeting on May 6-7, Poland's Monetary Policy Council cut all NBP interest rates by 50 basis points, including the reference rate to 5.25 percent. The decision was in line with market expectations.
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