The Monetary Policy Council (RPP) surprised the market by cutting interest rates by 25 basis points. The consensus had expected the rates to remain unchanged.
Although not long ago the RPP stated that it was not beginning a cycle of interest rate cuts, this marks the fourth reduction this year. It now seems possible that the easing cycle has indeed begun — with further cuts potentially on the horizon.
Several factors likely influenced this decision: inflation below 3% and within the deviation range from the target, a freeze on energy prices until the end of this year, and wage growth coming in below market expectations for two consecutive readings.
The next RPP meeting will take place in November, and there are already voices suggesting that this may not be the last rate cut of 2025.
We will learn more from the official statement, which the Council is expected to publish after 4:00 p.m. However, even with cautious wording, it is increasingly difficult to deny that a monetary easing cycle is now underway and being consistently continued.
By Szymon Gil, Investment Advisor, CIIA, Director of Strategic Clients, Michael / Ström Brokerage House
Disclaimer: The information contained in this publication is provided for informational purposes only. It does not constitute financial advice or any other form of advice, is of a general nature, and is not directed at any specific individual. Before using this information for any purpose, independent advice should be sought.
Source: ceo.com.pl
