The decision by the Monetary Policy Council (MPC) made at its October meeting was in line with expectations.

Poland's reference rate was last cut 12 months ago, when the MPC, seeing signs that inflation, then at 8.75%, was coming down, reduced rates by 0.25 percentage points.

While rate setters in the eurozone and the US brought down the cost of borrowing in late September, a move which was then followed in the Czech Republic and Hungary, in Poland, the monetary policy council adopted a “wait and see” approach.

The latest flash estimate of inflation, an important marker for interest rate policymakers, showed that prices in September shot up by 4.9%, compared to 4.3% in August and 2% in March.

After the last MPC meeting in September, National Bank of Poland Governor Adam Glapiński, who is the MPC’s chairman, said the body would review the inflation figures in March 2025 to see whether there was enough space to cut in the second quarter.

Glapiński is expected to provide more detail at a press conference on Thursday.