National Bank of Poland (NBP) has cut interest rates for the first time since Summer 2013

The Monetary Policy Council (MPC) of the NBP has cut their interest rates for the first time since Summer 2013. Financial experts regarded this step as long overdue, but they have been surprised by the rate cut of 50 percentage points. Most of the market experts predicted 25 percentage points.

The reference rate has been cut to 2% and the rediscount rate to 2.25%. The Lombard rate with a significant impact on the interest rates of loans has been reduced by 100 percentage points down to 3%. Bank economists consider that this step will encourage private consumption to stimulate economic growth. The MPC itself establishes the rate cut, as the economic factors of the last few months signal a slowdown of economic development, which they want to counteract by this rate cut.

Another rate cut in the next few weeks has not been dismissed by central bankers.

Source: Economic Market Poland