Following six policy rate cuts in 2025, the National Bank of Poland decisively maintained its key interest rate at 4% at its first 2026 meeting.
This decision clearly signals the central bank's readiness to pause and decisively slow the pace of monetary easing, ensuring ample time to assess the impact of recent decisions on economic conditions.
Growth remains solid, but sentiment softens
While the Polish economy continues to post solid growth, both consumer and business confidence have shown a slight deterioration.
This softer sentiment argues for caution in the short term, even as underlying economic dynamics remain supportive.
Inflation near target supports future cuts
In December, inflation was confirmed at 2.4%, broadly in line with the central bank’s target of 2.5% and within the ±1% tolerance band. Further rate cuts, therefore, remain likely in 2026.
Against a challenging European backdrop, the Polish economy appears well-positioned to weather the storm. We continue to invest in the Warsaw Stock Exchange across all our diversified portfolios.