WARSAW, July 2 (Xinhua) -- The National Bank of Poland (NBP) announced on Wednesday that it has cut interest rates by 25 basis points, lowering the benchmark reference rate to 5.00 percent from the previous 5.25 percent.
The decision, made at the conclusion of a two-day meeting of the Monetary Policy Council (RPP), also affects other key rates: the lombard rate now stands at 5.50 percent, the deposit rate at 4.50 percent, the rediscount rate at 5.05 percent, and the discount rate at 5.10 percent-all on an annual basis.
This marks the second rate cut in less than two months. In early May, the NBP surprised markets by lowering rates by 50 basis points, bringing the reference rate down from 5.75 percent to 5.25 percent.
Analysts at Pekao Bank noted that while the macroeconomic environment supports monetary easing, the Council had previously conveyed a more hawkish stance. "Markets were expecting a rate cut in September. What changed? Most likely the July inflation projection and the lower inflation path played a decisive role," they said.
Experts at ING Bank Slaski also commented that while the rate cut surprised markets, it was justified given the outlook for inflation approaching the 2.5 percent target as early as July, combined with weak economic conditions. They also pointed to easing risks from global oil prices. "We expect further rate cuts after the summer," they concluded. ■