top

Poland Surprises Markets With Unexpected Rate Cut

Poland's central bank reduced its main rate unexpectedly by 25 basis points to 5% from 5.25. The decision, announced Wednesday, was a surprise to financial markets, where expectations had been widespread that the rate would be held steady.

By Nikodem Baran | Last Updated: 3 Jul 2025
This is the second cut of the year after a 50-basis point reduction in May — the first in a year and a half. The bank's Monetary Policy Council went ahead with the move despite having signalled a more cautious or "hawkish" approach to monetary policy.

Economic Conditions Support Easing
Economists also say that the central bank's decision is appropriate given the state of the economy. "Even though the market was expecting a cut in September... it seems conditions now favour monetary policy ease," noted Bank Pekao's experts. They cited the bank's July forecasts and falling inflation as the main reasons for the decision.

They did a similar thing and called the versioning surprising, though reasonable. They noted that inflation is likely approaching the 2.5% target for July, consistent with the bank's objectives. ING also forecast that further rate cuts could come after the summer, depending on the trajectory of inflation.

The move by the central bank indicates the pendulum swinging toward easing, with stronger macro readings and a less threatening inflation tool. Nevertheless, the surprise has triggered a broad-based market response and re-pricing of expectations for future policy changes.
 

Related Posts

Gazprom's Gas Supply to Europe Drops Sharply in June

Gazprom's Gas Supply to Europe Drops Sharply in June

The Russian energy company Gazprom saw a plunge in its natural gas supplies to Europe in June as its daily gas flows from the TurkStream pipeline fell by 18.3% from May. Analysts said the drop was a response to maintenance on the pipeline, which is now the only remaining route for Russian gas into Europe after Ukraine declined to renew a five-year transit deal that ended on Jan. 1.

Lithuania Considers Return to Nuclear Power After 15 Years

Lithuania Considers Return to Nuclear Power After 15 Years

Fifteen years after decommissioning its only nuclear power plant, Lithuania is considering turning back to atomic energy. On Wednesday, the government pledged to set up a working group to look into the nation's nuclear power options, primarily to make up for the increased demand for electricity and boost energy security.

Polish Astronaut Speaks Live With Tusk From Space

Polish Astronaut Speaks Live With Tusk From Space

Astronaut Polish SÅ‚awosz UznaÅ„ski-WiÅ›niewski – LIVE Contact with SÅ‚awosz, the first ever Polish astronaut – 6th day in space. At 15.26, he was televised during a press conference with Prime Minister Donald Tusk. The discussion was part of a broad broadcast that enabled audiences throughout Poland to speak with the astronaut in space, where he also shared insights about ongoing space experiments being conducted during the mission.

Poland to Buy 180 More South Korean K2 Battle Tanks

Poland to Buy 180 More South Korean K2 Battle Tanks

Poland confirmed plans to buy 180 additional South Korean-made K2 Black Panther Main Battle Tanks, strengthening its defence capabilities with one of the most modern tank models in service. Defence Minister Władysław Kosiniak-Kamysz announced on Wednesday and said negotiations with manufacturer Hyundai Rotem had been finalised and a contract would soon be signed, marking a significant step forward for Poland defence strategy.

Polish Teen Accused of Plotting Islamic Terror Attack

Polish Teen Accused of Plotting Islamic Terror Attack

A 17-year-old Polish citizen who was living in the country's Podkarpackie region has been arrested on suspicion of planning a mass attack inspired by Islamic ideology, no doubt radical. The teenager is accused of supporting Islamic State (ISIS) and groups associated with jihadism, through sharing propaganda, online content and provoking attacks.

Ukraine, Russia Swap Prisoners Amid Ongoing Conflict

Ukraine, Russia Swap Prisoners Amid Ongoing Conflict

Ukraine and Russia conducted a fresh prisoner exchange on Thursday, part of accords forged at recent peace talks in Istanbul. Neither country revealed specific numbers, but Ukraine said that many of the freed soldiers had been held for several years, and some were captured during the 2022 siege of Mariupol. 
 

Advertisement

LATEST INSIGHTS

Potrzebujemy chwili Twojej uwagi

Uwielbiamy pliki cookie — zarówno te jadalne, jak i cyfrowe, które ulepszają Twoje wrażenia z przeglądania. Pomagają nam one udoskonalać funkcjonalność naszej witryny i Twoje ogólne wrażenia. Podstawowe i funkcjonalne pliki cookie są niezbędne do prawidłowego działania witryny i nie można ich wyłączyć. Ponadto używamy plików cookie w celu optymalizacji wydajności („komfort”) i wyświetlania spersonalizowanych reklam („marketing”), na co potrzebujemy Twojej zgody. Kliknij „Zezwól na wszystkie”, aby wyrazić zgodę na przetwarzanie danych. Uwielbiamy pliki cookie — zarówno te jadalne, jak i cyfrowe, które ulepszają Twoje wrażenia z przeglądania. Pomagają nam one udoskonalać funkcjonalność naszej witryny i Twoje ogólne wrażenia z przeglądania. Podstawowe i funkcjonalne pliki cookie są niezbędne do prawidłowego działania witryny i nie można ich wyłączyć. Ponadto używamy plików cookie w celu optymalizacji wydajności („komfort”) i wyświetlania spersonalizowanych reklam („marketing”), na co potrzebujemy Twojej zgody. Kliknij „Zezwól na wszystkie”, aby wyrazić zgodę na przetwarzanie danych.

Twoja zgoda obowiązuje również na mocy art. 49 (1) (a) RODO, co oznacza, że ​​Twoje dane mogą być tymczasowo przetwarzane poza EOG, w tym w USA. W takich przypadkach wysokie europejskie standardy ochrony danych mogą nie być w pełni zagwarantowane, a władze USA mogą uzyskać dostęp do Twoich danych bez skutecznego środka prawnego. Możesz wycofać swoją zgodę w dowolnym momencie.

PrywatnośćWarunki korzystania z serwisu

Możesz zarządzać swoimi preferencjami dotyczącymi plików cookie lub wycofać zgodę w dowolnym momencie za pośrednictwem naszych ustawień plików cookie. Aby uzyskać więcej informacji, zapoznaj się z naszą Polityką prywatności.