Poland Maintains Interest Rates at 5.75% Despite Rising Inflation

The National Bank of Poland (NBP) decided to keep its benchmark interest rate unchanged at 5.75%, maintaining this level since October 2023, despite rising inflation which reached 5.3% in January 2025. The Monetary Policy Council's decision reflects a commitment to controlling inflation amid political pressure for rate cuts to stimulate economic growth. Governor Adam Glapiński's post-meeting statement indicated a hawkish tone, highlighting concerns regarding persistently high core inflation and the potential for energy price spikes. Analysts expect the NBP to maintain this policy stance in the near term, with any rate cuts likely postponed until after the presidential elections. The decision has drawn criticism from political figures advocating for lower borrowing costs to support the economy, illustrating the ongoing tension between the central bank's independence and government economic strategies. Investors should remain vigilant as the central bank navigates the delicate balance between inflation control and economic recovery.