Interest rates down. There is a decision of the Monetary Policy Council

The Monetary Policy Council decided on Wednesday to lower interest rates. The reference interest rate was lowered by 25 basis points and will amount to 5.00 percent. The MPC's decision means lower loan installments.

At its July meeting, the Monetary Policy Council decided to lower interest rates . "On Wednesday, at the end of a two-day meeting, the Monetary Policy Council decided to lower interest rates by 25 basis points, " the National Bank of Poland reported.

Thus, the reference rate will be 5.00%, compared to the previous 5.25%. The Council's decision means that the main interest rate, the reference rate, has been reduced to 5% per annum. The lombard rate will be 5.50% per annum, the deposit rate 4.50%, the bill of exchange rediscount rate 5.05%, and the bill of exchange discount rate 5.10% per annum.

As reported by the NBP, the decision is related to forecasts regarding a decrease in inflation . "According to available forecasts, CPI inflation in the coming months will decrease below the upper limit of deviations from the NBP inflation target. Taking this into account, in the Council's opinion it has become justified to adjust the level of NBP interest rates," it was announced in a statement.

SEE: More tons of gold in the NBP vault. New purchases by President Glapiński

The last rate cut took place in early May . The Monetary Policy Council lowered rates by 50 basis points; the reference rate fell from 5.75% to 5.25%.

The decision to lower interest rates due to falling inflation was predicted by some experts. Let us recall that CPI inflation in May was 4%, and the preliminary inflation reading for June showed a slight increase to 4.1%. In May, it fell to 3.3% year-on-year from 3.4% in April.