Poland’s central bank cut its benchmark interest rate by 25 basis points to 4%—the sixth reduction this year—after inflation fell below target, according to Agnieszka Barteczko of Bloomberg. November’s inflation slowed to 2.4% from 4.9% at the start of 2025, prompting a total rate cut of 175 basis points since May. Governor Adam Glapinski signaled that further easing could be possible, as the central bank also lowered its 2026 inflation forecast to 2.9%. Barteczko writes:
Poland cut interest rates for the sixth time this year after inflation slowed more than expected and slipped below the central bank’s target.
The Monetary Policy Council cut the benchmark by 25 basis points to 4% on Wednesday, in line with the expectations of 27 out of 32 economists surveyed by Bloomberg. The remaining five forecast no change.
The fifth consecutive reduction comes as policymakers respond to inflation that’s declined to 2.4% in November from 4.9% at the start of the year. The MPC has slashed rates by a total of 175 basis points since May. […]
A number of analysts expect further easing, especially after the central bank last month lowered its forecast for average inflation in 2026 to 2.9% from 3.1% seen previously.
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