Polish Central Bank Stays Hawkish as Growth Hits 2.9%

Poland’s central bank maintained its benchmark interest rate at 5.75% for the 16th consecutive month, supported by signs of economic recovery and persistent inflation concerns.

The hold comes amid encouraging economic indicators, with Poland’s GDP growth reaching 2.9% last year and showing signs of recovery from the previous quarter’s contraction.

Governor Adam Glapinski has maintained a hawkish stance, citing inflation concerns as a key reason to delay discussions about monetary easing. The policy stance has had a positive effect on the zloty, pushing it to its strongest level in nearly seven months, which could help bring inflation down from 4.7% toward the central bank’s 2.5% target.

The decision has sparked political debate ahead of May’s presidential election, with front-runner Rafal Trzaskowski questioning Glapinski’s independence, though the governor maintains his actions are autonomous from political influence.