In the past the Monetary Policy Council of the National Bank always stuck to its more conservative approach to interest rate policy. However, it seems that the Monetary Policy Council became more responsive to current economic turbulences and for the shortest fourth consecutive time (since November) reduces the interest rates.
The interest rate went down in early February by 0.25 percent. The current prime lending rate equals to 3,75%. Although the Monetary Policy Council denies, it’s quite obvious and the market analysts agree, that there are more cuts in the interest rate to be expected. As long as the economy is on its course for slowdown and the inflation rate stays within inflation targeting (below 3%) there is still some room for stimulating the economy with cheap money. Thus, the majority of analysts expect another rate cut in March by additional 0.25 percent.
Source: Economic market Poland, Issue 195, 02/2013