‘Forget about interest rate cuts,’ says Polish central bank chief

Poland’s central bank president, Adam Glapiński, rules out interest rate cuts until 2026 due to persistent high inflation

Polish central bank NBP head Adam Glapiński (Source: NBP).
By Grzegorz Adamczyk
2 Min Read

During a press conference following the two-day meeting of the Monetary Policy Council (RPP), Adam Glapiński, the president of the National Bank of Poland (NBP), announced that the council decided to keep the current interest rates in place, with the main NBP rate holding steady at 5.75 percent.

He emphasized that any potential reduction in rates is not foreseeable until inflation begins to decline, which is predicted to occur around 2026. “We can forget about the interest rate cuts with rising inflation,” stressed the president of the NBP.

Glapiński highlighted the council’s decision to keep rates unchanged as “obvious,” stating that this approach aims to stabilize inflation at a lower level. He anticipates that inflation will reach the target rate of 2.5 percent (+/- 1 percent) by 2026.

The NBP head also said that the change in regulations regarding the protection of energy prices from July 1 will result in an inflation increase this month of approximately 1.6 percent. Meanwhile, the expiration of current protection mechanisms in January 2025 should lead to an additional inflation rise of about 1.3 percent.

Glapiński also addressed conflicting forecasts regarding inflationary expectations, as well as how businesses and households might adjust their behavior in response to anticipated inflation levels. He reaffirmed that the RPP bases its interest rate decisions on data projections, suggesting that if these projections hold, discussions on rate cuts could potentially begin in 2026 as inflation starts to taper off.

As Remix News previously reported, Poland currently has the highest mortgage rates in the EU, driven by Poland’s high interest rates, leaving many homebuyers unable to purchase a home on favorable terms.

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