National Bank of Poland (NBP): definitely the last interest rate cut

The Interest Rate Setting Council of the National Bank of Poland (NBP) has cut the prime rate by a further 25 basis points at the beginning of July. The reference prime rate herewith stays on the historical all-time low of 2,5%. While in the past the vague declarations of the Interest Rate Setting Council left a huge wiggle room, nowadays it was surprisingly clear without even any ambiguity mentioned, that this is definitely the last interest rate cut. As to the opinion of the president of the National Bank of Poland, Mr. Marek Belka, the Polish national economy has the worst already behind.

The finalization of the interest reduction cycle stays an expression of the optimism of the Interest Rate Setting Council, that in the months to come an economic recovery will take place successively. The interest rate cuts have helped the economy in achieving this. So amongst others the turnover in the retail sector has stabilized. As well the sale of consumer credits shows first signs of pick-up in demand. The low inflation also signifies that the private households have more money in their pockets. For this year an inflation rate is expected which will come out on the level of round about 0,9% p.a. solely.