Poland Maintains Interest Rate at 5.75% Amid Inflation Concerns

On January 16, Poland's National Bank held its reference interest rate steady at 5.75%, maintaining a cautious approach amid ongoing inflation concerns. The central bank indicated a hawkish tone, citing inflationary pressures from rising energy prices and other domestic factors, with consumer price index growth at 4.7% year-on-year as of December. While some analysts expect rate cuts could be on the horizon, particularly in March, the bank's leadership emphasizes the need for clearer inflation trends before making any decisions. The outlook remains uncertain, with inflation anticipated to stay above the target of 2.5% in the medium term. The central bank's stance is reflective of broader global challenges in balancing inflation control with economic growth. Investors are closely monitoring these developments, hoping for insights into potential policy shifts in the upcoming months.