The National Bank of Poland left its key reference rate unchanged at 3.75% at its July 2026 meeting, in line with market expectations. The lombard and deposit rates were also kept steady, at 4.25% and 3.25% respectively. This was the fourth consecutive meeting at which interest rates were held at their lowest levels since 2022, reflecting a continued easing of inflationary pressures across Eastern Europe.
Headline inflation slowed to 2.3% in June 2026, its lowest reading since before the escalation of tensions in the Middle East, and now stands at the midpoint of the central bank’s target range. At the same time, economic growth cooled in the first quarter of 2026, with GDP expanding by 3.5% year-on-year, down from 4.1% in the previous quarter, amid weaker domestic demand and a slowdown in gross fixed capital formation.
