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Poland May Start Rate Cuts in February, Says Council Member

Bloomberg Markets •
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Monetary Policy Council member Ludwik Kotecki told Bloomberg that Poland may begin easing policy as early as February, proposing a quarter‑point interest rate cut. He cited improving low inflation readings as the main driver for the anticipated move, suggesting the central bank feels confidence returning in the coming months ahead.

Poland’s central bank has kept its benchmark at 6.75% since late 2022, a stance that helped curb double‑digit inflation but also strained borrowers. Recent data show consumer price growth slipping below 5%, easing pressure on households and businesses and opening space for monetary stimulus in the term and fiscal policy.

Market participants will monitor the February decision for clues on the timing of further easing. A modest cut could buoy the zloty, lower loan costs, and align Poland with other Central European economies that have already begun trimming rates. Analysts warn that premature moves risk reigniting price pressures in 2024.