UPDATE: Poland's central bank upholds its medium-term inflation target of 2.5 pct for 2026
Poland's central bank NBP has decided to uphold its medium-term inflation target of 2.5 percent for 2026, with a deviation range of +/- 1 percentage point, according to NBP's monetary policy guidelines for next year published on Friday. Poland's central bank assumes that in 2026, the average annual consumer price growth, including core inflation, will be lower than in 2025.
"NBP will continue to pursue the strategy of a medium-term inflation target at 2.5 percent, with a symmetric band for deviations of +/-1 percentage point. NBP's interest rates will remain the principal instrument of monetary policy," Poland's central bank stated in the document.
"Monetary policy will continue to be implemented under the floating exchange rate regime. However, NBP does not rule out interventions in the foreign exchange market," it added.
The National Bank of Poland stipulated that the scope, manner and scale of using monetary policy instruments by NBP will take into account in a flexible way the determinants of monetary policy implementation, including in particular market conditions, as well as economic consequences of the severe global shocks of
the recent years.
The NBP has decided to uphold all monetary policy instruments for 2026: interest rates, open market operations, minimum reserve requirements, deposit and credit operations, bill discount credit, FX swaps and currency interventions.
ao/