Poland's central bank has lowered its main interest rate to 5.25%, the lowest level in three years. The Monetary Policy Council made the decision to cut rates by 0.5 percentage points in an effort to support economic growth and ease the burden on borrowers. The change mainly affects loans with variable interest rates tied to the Warsaw Interbank Offered Rate (WIBOR), which had already fallen by a similar amount in recent weeks. This means that people with variable-rate loans may now benefit from lower monthly payments, while fixed-rate loan holders will not see immediate changes.
Lower rates are expected to boost the economy by giving households more disposable income and making loans, especially mortgages, more affordable. This could lead to higher consumer spending and greater activity in the housing market. Despite the cut, central banker Adam Glapiński said no additional changes are expected in June, though further cuts could happen later in the year. Council members Henryk Wnorowski, Ludwik Kotecki, and Przemysław Litwiniuk shared similar views, suggesting potential rate adjustments in July or the autumn. They all agreed that rates are likely to be lowered at least twice more before the end of 2025.