As of May 6, 2025, the National Bank of Poland’s (NBP) main reference rate stands at 5.75%. This level has remained unchanged since October 2023. In recent months, inflation has significantly slowed, and the pace of economic growth has weakened. The Monetary Policy Council (RPP) has not yet decided on further rate cuts, but current data suggests that such a decision may be made as early as May 7, 2025, following the conclusion of the RPP’s two-day meeting.
Rate cuts? What is the RPP’s position?
According to statements from RPP members and the National Bank of Poland, a cycle of interest rate reductions may begin in May. Council member Przemysław Litwiniuk has indicated that the conditions are appropriate for a rate cut of 0.5 percentage points. NBP President Adam Glapiński has signaled that monetary policy easing is possible if inflation remains at the current, controlled level.
What does a drop in interest rates mean?
For borrowers:
- Possible reduction in monthly payments for variable-rate mortgages and business loans.
- Better conditions for refinancing loans taken out between 2021 and 2023.
For entrepreneurs:
- Greater access to investment and working capital loans.
- Lower cost of leasing and leasing-related loans.
For savers:
- Decline in deposit interest rates.
- Need to consider alternative capital allocation options, such as bonds or ETFs.
For the real estate market:
- Potential increase in demand for apartments and mortgage loans.
- Improved creditworthiness for some individual borrowers.
What should you do before the RPP’s decision?
🔹 Check your loan interest rate and the possibility of refinancing.
🔹 If you’re planning to invest – prepare your loan documentation to respond quickly to changing conditions.
🔹 If you’re saving – compare available long-term and inflation-indexed options.
🔹 Monitor RPP announcements – the decision will be announced on May 7, 2025.
Summary
The May meeting of the RPP may mark the beginning of a monetary policy easing cycle. Interest rate cuts will directly impact the situation of borrowers and entrepreneurs, and indirectly affect the economy and the Polish złoty. It’s worth following developments and adjusting your financial strategy accordingly – both personally and in business.