Glapiński Opens Door to Interest Rate Cuts Post-Summer

NBP Governor Adam Glapiński suggests that a 25-basis-point interest rate cut could be proposed at the first Monetary Policy Council meeting following the summer break, provided current economic conditions remain unchanged.

Outlook for Interest Rate Reductions

National Bank of Poland (NBP) Governor Adam Glapiński stated that if current economic conditions persist, a reduction in interest rates could be feasible in 2026. He did not rule out submitting a formal proposal for a 25-basis-point cut at the first Monetary Policy Council (RPP) meeting after the summer.

When asked about the likelihood of a cut before the end of the year, Glapiński emphasized that while he is personally inclined toward such a move, it remains subject to the consensus of the entire Council. He noted that although he holds one vote, the current environment signals a potential path forward, provided key economic parameters do not shift.

Monetary Policy Council Stance

Glapiński described the current atmosphere within the Council as “dovish,” though he clarified that no specific discussions regarding a cut occurred during the most recent session. He stressed that he does not intend to convene an extraordinary RPP meeting in July.

The NBP chief characterized the RPP members as “cautious doves,” noting that their apprehension regarding policy shifts is expected to gradually diminish by mid-2027 as the economic situation stabilizes. He added that his own intuition suggests there is room to be a “less cautious dove” at this stage.

Current Monetary Status

At its recently concluded meeting, the Monetary Policy Council decided to maintain interest rates at their current levels, with the reference rate remaining at 3.75 percent. The RPP has implemented only one rate cut so far this year, which took place in early March.