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Tusk on interest rates: it's high time, people are waiting
The battle against the elevated prices from the PiS era is yielding positive results. It is high time to reduce interest rates – Prime Minister Donald Tusk stated on social media on Wednesday. He directed this message to the president of the National Bank of Poland, Adam Glapiński.
According to a rapid estimate released on Wednesday by the Central Statistical Office, consumer goods and services prices rose by 4.2 percent year-on-year in April 2025. Analysts had anticipated an increase of 4.3 percent. In March, the inflation rate was recorded at 4.9 percent.
„April’s inflation is significantly lower than what experts predicted!” Prime Minister Donald Tusk posted on social media on Wednesday.
„The struggle against the high prices from the PiS era is showing results. It’s about time, Mr. Glapiński, to lower interest rates. Both individuals and businesses are waiting!” he added.
May meeting of the Monetary Policy Council
The Monetary Policy Council’s meeting is set for Tuesday and Wednesday of next week. The last occasion the MPC reduced interest rates at the central bank was in October 2023.
During an early April conference, NBP President Adam Glapiński mentioned that there may be potential for interest rate cuts in the near term. – You could humorously say that I come as a dove among other doves. The Council is shifting its stance to a more dovish approach, indicating expectations for a change towards lower interest rates – stated the head of the central bank.
He also evaluated that a reduction in interest rates could take place in May or any other month. He suggested that this year, in an optimistic scenario, there could be two rate cuts, each by 0.5 percentage points.
For an extended period, the President of the National Bank of Poland has maintained that, among other factors, due to rising inflation, there is no scope to adjust interest rates.
NBP reference rate PAP/Michał CzernekEconomists: interest rate cuts are imminent
Following Adam Glapiński’s conference, along with subsequent statistics regarding wages and inflation, economists are predicting that the cut will occur during the May Monetary Policy Council meeting.
„Today’s inflation data constitutes a significant argument in the discussions regarding the scale of NBP interest rate reductions at the MPC meeting next week,” noted Rafał Benecki and Michał Rubaszek from ING Bank Śląski. „We anticipate a 50 basis point rate cut in May and 125 basis points over the course of the year,” they added.
„April’s inflation, together with relatively weak indicators from the Polish real economy (industry, retail sales, construction), will provide sufficient justification for the Monetary Policy Council to implement a 50 basis point rate cut at the May meeting,” experts from Pekao stated.
As forecasts for declining interest rates emerge, three-month and six-month WIBOR rates are also decreasing. Consequently, this leads to a reduction in the amount of loan repayments.
Read also: „I come as a dove”, installments are decreasing. Calculations>>>
