Polish Monetary Policy Council Cuts Interest Rates, Offering Relief for Borrowers

The Monetary Policy Council (MPC) of Poland held its first meeting after the summer recess on September 2-3, 2025, and delivered a decision eagerly awaited by millions of Poles. The MPC opted to reduce the National Bank of Poland’s (NBP) interest rates by 25 basis points, bringing the main reference rate to 4.75% annually.

“This is a very clear signal that inflation in Poland is under control and is gradually returning to the target level,” remarked Piotr Juszczyk, Chief Tax Advisor at inFakt, during an interview with Wprost.

The rate cut has significant implications for borrowers and the broader economy. According to Juszczyk, the decision offers much-needed relief for individuals and businesses with variable-rate loans. “For borrowers, this means lower installments on mortgages and business loans,” he explained. Entrepreneurs, particularly those relying on credit to finance investments, will now have more breathing room to plan and manage their growth.

However, while the move supports borrowers and the economy, it comes at a cost for savers. Lower interest rates mean reduced yields on deposits and retail bonds. “The lower rates are a two-sided coin — borrowers gain, but savers face less favorable returns on their savings,” said Juszczyk. He noted that the MPC’s decision represents a compromise, striking a balance between economic support and reduced incentives for saving.

With the 25-basis-point reduction, the updated National Bank of Poland interest rates are as follows:

• Reference rate: 4.75% per annum
• Lombard rate: 5.25% per annum
• Deposit rate: 4.25% per annum
• Bills of exchange rediscount rate: 4.80% per annum
• Bill discount rate: 4.85% per annum

The new rates, formalized through the MPC’s latest resolution, take effect on September 4, 2025. The decision reflects the Council’s confidence in Poland’s economic stability and its intent to foster financial flexibility for individuals and businesses navigating the evolving economic environment.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.