Poland Interest Rate

The National Bank of Poland held its benchmark interest rate steady at 5.75% in November for the twelfth consecutive meeting, as expected. The Lombard and deposit rates also remained unchanged at 6.25% and 5.25%. Preliminary data showed inflation rising to 5% in October, up from 4.9% in September, reaching a 10-month high amid increased prices of energy carriers and, to a lesser extent, food and beverages. The council noted that inflation is driven by regulatory factors and substantial wage growth, especially in the public sector, and expects Inflation to stay elevated, and that further energy price hikes in early 2025 could add more pressure. However, once the effects of current price pressures fade and wage growth moderates, inflation is projected to approach the NBP’s medium-term target. As for economic growth, data suggest that Q3 GDP growth may have slowed, with retail sales, industrial production, and construction output all lower in September than the previous year.