WARSAW, Nov. 6 (Xinhua) -- The National Bank of Poland (NBP) announced Wednesday its decision to keep interest rates unchanged.

After a two-day meeting, the NBP's Monetary Policy Council (RPP) decided to maintain the reference rate at 5.75 percent, with the Lombard and deposit rates held steady at 6.25 percent and 5.25 percent, respectively.

In a statement, the NBP noted ongoing economic weakness, with data suggesting that third-quarter growth may fall slightly below the previous quarter's.

According to the RPP, inflation remains significantly elevated, driven by rising energy prices and regulatory factors. RPP also highlighted that wage increases, especially in the public sector, are adding pressure to domestic prices.

The bank anticipates that inflation will remain high in the coming quarters, with the potential for further increases if energy prices continue to rise in early 2025. However, inflation is expected to align with the NBP's medium-term target once energy price effects subside.

Commenting on NBP's decision, Sergey Druchyn from the Polish Economic Institute (PIE) said that rate cuts in Poland are likely to lag behind other European countries, with reductions anticipated in the second quarter of 2025.

Poland's last rate cut occurred in October 2023, when the bank lowered rates by 0.25 percentage points. Enditem

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