National Bank of Poland’s Reference Interest Rate Lowered 25 Basis Points to 4.5% – Currency Thoughts

National Bank of Poland’s Reference Interest Rate Lowered 25 Basis Points to 4.5%

October 9, 2025

The interest rate target hasn’t been as low as the new level since just before a 75-basis point hike in May 2022. The adjustment today was the fourth cut since May, and the combined drop since then has been 125 basis points. A steady 5.75% maintained for over a year was in turn preceded by back-to-back cuts in September and October 2023 that totaled a full percentage point. At 4.5%, the new level is 225 basis points below the cyclical high of 6.75% that prevailed for a year up to September 2023. Central bank officials released a statement cites “an improve inflation outlook” to justify the latest rate reduction and also reserves the right to use currency market intervention to guard against excessive zlotty depreciation.

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Narodowy Bank

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