Poland’s Central Bank Keeps Rates Steady at 5.25% After May Cut

The National Bank of Poland (NBP) held its benchmark interest rate steady at 5.25% following a 50 basis point cut in May, with Governor Adam Glapinski and the Monetary Policy Council signaling a pause before potential further easing later this year. Inflation in Poland has eased to 4.1% in May, slightly below expectations, but wage growth and strong economic output have complicated the outlook, leading the bank to adopt a cautious stance. Analysts expect a wait-and-see approach until new inflation forecasts are published, likely in July, when discussions on future rate cuts could begin. Political developments, including the recent nationalist opposition victory in the presidential election, add uncertainty, as the government’s fiscal policy might loosen. Investors also look ahead to Glapinski’s upcoming comments for guidance on the economic outlook amid these dynamics. The NBP's decision reflects a balance between easing inflation pressures and supporting ongoing economic growth.