Poland's interest rates cuts trailed falling inflation in 2025
Poland's central bank NBP's interest rates were reduced by a total of 1.75 percentage points in 2025 as inflation fell more than 2 percentage points throughout the year.
The consumer price index (CPI) dropped to 2.5 percent in November 2025 from 4.7 percent in December 2024, 2.2 percentage points in total. Core inflation, which excludes the prices of food and energy, the most volatile components of the CPI, fell to 2.7 percent from 4 percent in the same period.
The NBP's rate-setting body, the Monetary Policy Council, closely watched the trend, reducing the reference interest rate seven times, to 4 percent in December 2025 from 5.75 percent a year before.
The cuts proved to be good news for mortgage holders, as the average interest rate on their home debt fell to 6.5 percent in October 2025 from 7.5 percent in December 2024, with a further reduction still expected.
The rate cuts failed to significantly affect the interest on consumer loans, though, which remained roughly unchanged. The average interest rate on such loans amounted to 11.6 percent in December 2024 and dropped by a mere 0.2 percentage points over the year, to 11.4 percent. (PAP)
jd/mf
