WARSAW, Sept. 3 (Xinhua) -- The National Bank of Poland (NBP) announced on Wednesday that it has cut interest rates by 25 basis points, lowering the benchmark reference rate to 4.75 percent from the previous 5.00 percent.

The decision also affects other key rates: the lombard rate now stands at 5.25 percent, the deposit rate at 4.25 percent, the rediscount rate at 4.80 percent, and the discount rate at 4.85 percent -- all on an annual basis.

It is the third rate cut this year. In early May, the NBP surprised markets by lowering rates by 50 basis points, bringing the reference rate down from 5.75 percent to 5.25 percent. And in July, the NBP cut the rates by another 25 basis points, bringing the reference rate down from 5.25 percent to 5.00 percent.

According to Polish media WNP, following the third rate cut this year, the reference interest rate has reached its lowest level since April 2022.

Economists from Bank Pekao expect further interest rate cuts. "A cut will likely occur also in the fourth quarter of 2025, and the reference rate will decrease to 4.5 percent by the end of the year," they forecasted.

According to economists from ING Bank, "In October we may see a pause in interest rate cuts, and the next debate on this issue will take place in November, when the Monetary Policy Council reviews the new inflation projection," they said. ■