Poland's Central Bank Holds Interest Rates Steady

Serbia's central bank opted to keep its one-week repurchase rate steady at 5.75%, a decision that surprised some economists who anticipated a cut. This cautious approach reflects ongoing concerns about price pressures. Similarly, Poland's National Bank (NBP) also maintained its benchmark rate at 5.75% amidst rising inflation, which hit 5% in October, indicating a wait-and-see strategy as policymakers assess economic conditions. Market observers are closely monitoring the NBP's potential future rate cuts, expected to begin after inflation peaks and forecasts show a sustained decline towards target levels. The contrasting monetary policies in Serbia and Poland highlight the varied approaches central banks in Eastern Europe are taking in response to inflationary challenges and budgetary pressures.