Middle East tensions set to shape Poland’s monetary policy prospects

National Bank of Poland Governor Explains Interest Rate Reduction

The head of the National Bank of Poland (NBP) explained that the recent decision to lower the reference interest rate by 25 basis points to 3.75% was based on two main factors: a noticeable drop in inflation over the past several months and a more favorable inflation outlook, as indicated by the NBP’s March forecast and analyses from other institutions.

Adam Glapiński highlighted that inflation has remained at or below the central bank’s target for the past six months, with the most recent figures dipping under 2.5%. He also mentioned that the price surge resulting from the attack on Iran was not factored into the March policy meeting. The NBP is preparing updated projections and a revised inflation forecast.