Poland's Central Bank Holds Interest Rates at 3.75% in June
The National Bank of Poland kept its benchmark rate unchanged for the third consecutive month as inflation pressures ease, leaving mortgage and savings rates stable for now.
Poland's Monetary Policy Council held interest rates steady at 3.75% during its June 1-2 meeting, maintaining borrowing costs at their lowest level in four years. The decision, which met market expectations, came after inflation unexpectedly dropped to 3.1% in May from 3.2% in April, well below the forecast of 3.6%.
What's driving the decision
The central bank cited continued uncertainty around geopolitical developments—particularly the Middle East conflict's impact on energy prices—as a reason to pause further rate adjustments. After cutting rates by 25 basis points in March, policymakers have adopted a cautious "wait-and-see" stance. Governor Adam Glapiński noted that while inflation remains within the NBP's 1.5–3.5% target band, fuel prices surged 12.3% year-on-year in May, though other categories showed signs of cooling.
The decision contrasts with expected rate hikes in the eurozone, reflecting Poland's relatively stable inflation outlook compared to its neighbors.
What it means for you
If you have a mortgage: Variable-rate mortgages tied to WIBOR (the Polish interbank rate) should remain stable for now. Banks are unlikely to change monthly payments in the near term, though further cuts later in 2026 could reduce costs. If you're earning foreign currency: Deposit rates at Polish banks remain relatively attractive compared to Western Europe, but the real return after inflation is modest. If you're planning to borrow: Fixed mortgage rates are likely to stay near current levels through the summer, giving you predictable borrowing costs if you're house-hunting.
Sources
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