MPC member: Interest rate cuts dependent on energy prices and inflation

Autumn may be a good time for a solid reduction in interest rates, in 2025 they may fall by a total of 125 basis points - said MPC member Przemysław Litwiniuk on TVN24.

"If there are no external circumstances that would disturb our views, the coming autumn may be a good time for a solid step in lowering interest rates," Litwiniuk said.

"I think the overall correction in interest rates in 2025 could amount to 125 basis points," he added.

He said certainty about energy prices would be important.

"If tariffs return to the level of PLN 623, we will have an increase in the inflation rate, but in my opinion, the prices of raw materials indicate that (as well as the falling dynamics of service prices) we will be dealing with similar prices to those currently operating at the frozen level. Then our estimates regarding the return of inflation to the level of 4.2 in the last quarter of this year may turn out to be overestimated," Litwiniuk said.

The Monetary Policy Council at its meeting on 6-7 May 2025 lowered all NBP interest rates by 50 basis points, including the reference rate to 5.25 percent. The decision was in line with market expectations. (PAP Biznes)

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