Interest Rate Adjustment The reference&ensp;rate was cut from 5.75% to 5.25% and all other rates by 50 basis points. Besides the key&ensp;rate, the rediscount rate was cut to 5.3% from 5.8%, the discount rate to 5.35% from 5.85%, the Lombard rate to 6.25% from 6.75% and the deposit rate to 4.75% from 5.25%.
Inflation Expectations and Prospects for&ensp;the Future This&ensp;rate decrease comes after weeks of sky-rocketing inflation in Poland. The central bank has been raising rates since late 2021 to keep&ensp;a lid on inflation, which hit 17.9% in October 2022. Interest rates had climbed to 6.75%&ensp;by August 2023. But inflation has since&ensp;dropped, and the latest year-on-year inflation data for April was at 4.2%.
Governor's Remarks In March, Adam Glapiński, the governor of the National Bank of Poland, had said that the market consensus was &ldquo;premature&rdquo; in predicting more than one rate cut in&ensp;May, June or July if it becomes clear that inflation is under control. While warning the bank could opt to make a single rate cut only, he said in&ensp;an upbeat scenario there could be two 50-basis-point reductions this year.
Looking Ahead The central bank&rsquo;s guess on the level of&ensp;inflation in future years is even lower, as it expects inflation to fall to 2.5% by 2027. While upbeat about the country's economic prospects, the bank is wary of risks and said it&ensp;will keep a close eye on the economy.
The decision is a milestone in Poland's economic policy in which the central bank has been trying&ensp;to clamp down on inflation while not choking off economic growth.
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The Bank of Poland has cut its headline interest rate by 50 basis points, the first reduction since&ensp;October 2023. The move is made in the face of&ensp;continuing declines in inflation.

Poland Reduces Interest Rates for the First Time Since October

Central Transportation Hub&ensp;and HighSpeed Vision The Central Transportation Hub will connect Warsaw and Ł&oacute;dź, the country's&ensp;vital infrastructure crossing. The project will cost approximately&ensp;132 billion zloty (&euro;31 billion) and is to include constructing a new airport which will handle up to 34 million passengers a year. A new hub will be built to connect the airport to revamped local roads and&ensp;railway lines, including Poland's first high- speed rail lines.
At present Poland has no train traffic faster than 200&ensp;km/h, the threshold that is common for high-speed rail. The deal with KNR is meant to change that, drawing on South Korea's extensive expertise in rail technology to help Poland achieve its&ensp;ambitions.
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Looking Ahead KNR is the the organisation tasked with looking after South Korea's rail&ensp;infrastructure, 650km of which are high-speed lines. It has successfully delivered 88 rail projects in 27 countries including the United&ensp;States, China and Vietnam.
The key cooperation areas will take place in the fields of engineering, maintenance and it plays a significant role in the&ensp;safe and uninterrupted operation of the Polish high speed line &ndash; said Filip Czernicki, CEO of CPK. The first section, connecting Warsaw with Ł&oacute;dź via the new airport, is due to be completed&ensp;as soon as 2032 &mdash; to coincide with the earliest possible start of operations at the facility.
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The&ensp;Polish government has made another step towards the modernisation of Polish transport system, recently concluding a Letter of Intent with Korea National Railway (KNR). The order was placed to facilitate the construction of a high-speed rail&ensp;system that forms a part of Poland's Central Transportation Hub (CPK) plan, a project that aims at merging air, rail, and ground transportation within the country.
The collaboration will involve sharing technical know-how and experience in tunnel&ensp;maintenance, railway switch systems and railway infrastructure diagnostics. This partnership comes as an extension of existing relationships with South Korean partners,&ensp;says CPK.

Poland Partners with South Korea for High-Speed Rail Project

Szybki szacunek GUS ujawnił, że PKB Polski wzr&oacute;sł o 3,2% w pierwszym kwartale 2025 r. w por&oacute;wnaniu z analogicznym okresem ubiegłego roku. Choć jest to nieco poniżej 3,4% wzrostu odnotowanego w ostatnim kwartale 2024 r., to i tak jest to wyraźna poprawa w por&oacute;wnaniu z 2,2% odnotowanymi na początku 2024 r. Kwartalnie skorygowany sezonowo PKB wzr&oacute;sł o 0,7% w pierwszym kwartale 2025 r., po silniejszym wzroście o 1,4% w poprzednim kwartale. W ujęciu rocznym skorygowany wskaźnik pokazuje wzrost o 3,8%, co sugeruje, że gospodarka nabiera stałego tempa. Chociaż liczby te są nadal wstępne i mogą ulec zmianie, gdy w czerwcu zostanie opublikowany pełny raport, odzwierciedlają one dalsze odbicie po spowolnieniu gospodarczym, kt&oacute;rego doświadczył w pierwszej połowie 2023 r. Minister przewiduje dalszy wzrost Reagując na najnowsze dane, minister Domański podkreślił solidne wyniki Polski w por&oacute;wnaniu z innymi krajami UE:
&bdquo;Wzrost polskiego PKB w pierwszym kwartale jest znacznie szybszy niż średnia UE&rdquo;.
Oczekuje, że gospodarka kraju będzie rosła jeszcze szybciej w nadchodzących miesiącach, gł&oacute;wnie ze względu na zwiększoną aktywność inwestycyjną.
&bdquo;W całym 2025 r. Polska będzie jedną z najszybciej rozwijających się gospodarek w UE&rdquo; &mdash; dodał Domański.
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Gospodarka Polski jest na dobrej drodze, aby stać się jedną z najsilniejszych w Unii Europejskiej w tym roku, według ministra finans&oacute;w Andrzeja Domańskiego. Jego komentarze pojawiły się po tym, jak nowe dane wykazały ciągły wzrost gospodarczy, w dużej mierze napędzany rosnącymi inwestycjami. Solidny start 2025

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