Another Polish Interest Rate Cut
March 5, 2026
The National Bank of Poland lowered their policy reference interest rate to a 4-year low of 3.75% from 4.00% yesterday in what had been an expected decision in spite of the elevation of geopolitical uncertainties this month. The new level is 300 basis points below the peak of 6.75% between September 2022 and July of 2023. 175 basis points of that decline was implemented in the final seven months of last year. The central bank’s explanatory statement yesterday observes that the declining trend of inflation in 2025 was extended in January to 2.2%, which happens to represent a 22-month low and a drop from a peak of 18.4% touched about three years ago. In addition, projected inflation this year and next has been lowered, too. In addition, “annual wage growth in the enterprise
sector in January 2026 was markedly lower than in the previous month.” Medium-term inflation is targeted at 1.5-3.5%, and “NBP may intervene in the foreign exchange market” if needed to secure that goal.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: National Bank of Poland
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