Polish central banker Ireneusz Dabrowski said Poland’s Monetary Policy Council (MPC) is likely to slow down rate cuts in the near future and enter a wait-and-see mode, but there is a possibility of rate cuts later in 2026.
“We will definitely slow down with cuts and perhaps enter wait-and-see mode for some time. There is no room for debate here, because we will be increasingly cautious,” he told the PAP news agency in comments published on Friday.
Dabrowski joined the group of members of the MPC who have already signalled that the Council may refrain from further easing of monetary policy in the near future.
In December, the MPC cut its main interest rate (PLINTR=ECI) by 25 basis points to 4.00%. The National Bank of Poland has cut rates six times this year, by a total of 175 basis points.
Justifying the MPC’s December decision, National Bank of Poland Governor Adam Glapinski said the central bank will probably move to a wait-and-see mode before any further cuts.
“The likelihood of further rate cuts in the near future is rather lower, but there is of course a possibility for rate cuts later in 2026. At every MPC meeting, we talk about what will be happening in the economy in the 6-8 quarter horizon,” Dabrowski said.
In November, inflation was 2.4% year-on-year – lower than analysts expected – and below the 2.5% midpoint of the central bank’s target range.