The Monetary Policy Council (MPC) decided to cut interest rates by 0.25 points. percent – the National Bank of Poland announced in a statement.
A meeting of the Monetary Policy Council took place on 3 and 4 October. The Monetary Policy Council decided to cut the NBP interest rate by 0.25 points. percent To the level:
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reference interest rate: 5.75 percent on an annual basis;
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Lombardy rate: 6.25 percent on an annual basis;
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deposit interest rate: 5.25 percent on an annual basis;
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rediscount rate for bills of exchange: 5.80 percent on an annual basis;
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discount rate on the bill: 5.85 percent on an annual basis.
The Monetary Policy Council resolution will come into effect on October 5, the National Bank of Poland said in a statement on Wednesday.
Reduction in NBP interest rates
PKO BP analysts forecast that the Monetary Policy Council will cut rates by 25 bps this week with the risk of a 50 bp move and 25 bp in November.
– The basic factor pointing to a reduction in NBP interest rates is a marked decline in inflation. From the peak of 18%. as of February this year, CPI inflation fell to just over 8%. in September. Forecasts indicate that this rate will be between 6 and 7 percent by the end of this year, and that it could fall to 4 percent at the beginning of the first and second quarters of next year, i.e. the predicted upper limit of allowable deviations from the point target, namely 2.5 percent – said Piotr Bujak, chief economist of PKO BP, in an interview with the DoRzeczy.pl portal.
Let’s not forget that the Central Bureau of Statistics (GUS) reported that consumer inflation was 8.2%. on an annual basis in September 2023 according to preliminary data. Compared to the previous month, prices of consumer goods and services fell by 0.4%. (price index 99.6). The Polish Economic Institute pointed out that inflation is currently being reduced by the decline in the growth rate of food and energy prices. At the end of August, the Central Bureau of Statistics reported that consumer inflation was 10.1%. on a yearly basis.
Source: Do Rzeczy

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.