Poland Cuts Key Rate to 3.75%

2026-03-04 15:03 By Larissa Caser 1 min. read

The National Bank of Poland lowered its benchmark interest rate by 25bps to 3.75% at its March meeting, its first rate cut of the year and aligning with market expectations, while signaling that future decisions will depend on upcoming developments.

The move brings the policy rate to its lowest level since March 2022.

Despite growing concerns over the Middle East conflict, which has driven up global oil and natural gas prices, the central bank pointed to improved March inflation projections.

Annual headline inflation fell to 2.2% in January and has remained within the bank’s target range of 1.5–3.5% since July 2025.

Still, the NBP flagged upside risks to the inflation outlook, with expansionary fiscal policy, strong demand, and robust wage growth adding to the increase in energy prices.

Poland’s economy continued to expand steadily throughout 2025.

GDP grew by 4% year-on-year in the fourth quarter, marking the strongest pace of growth since the third quarter of 2022.



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