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Poland's economy currently needs investments the most, and lower interest rates would help support them, according to Polish finance minister Andrzej Domanski on Friday.
The country is relying on investments, supported by European Union pandemic recovery and resilience funds, to boost its GDP by 3.9% this year, Reuters news agency reports.
“As finance minister, I do not judge the National Bank of Poland's policy, but it is basic macroeconomic knowledge that lower interest rates support economic growth, support investments, which is what the Polish economy needs most now,” Domanski commented during an interview with private broadcaster Polsat News.
“Firstly, the high profits of banks, which are a fact, are a direct result of the very high interest rates in Poland,” he stated, going on to add that the banking sector in Poland was highly competitive and that there are proper institutions in place to oversee it.
“I can only say that the main, definitely the most important factor that makes the banking sector results high this year is the high NBP interest rates,” Domanski said.
The National Bank of Poland (NBP) has maintained its interest rates at the same level since October 2023, with the reference rate standing at 5.75%.
In February, Governor Adam Glapiński stated that there was little scope for any rate cuts in the near future, as inflation was expected to remain high through the end of 2025.
This forecast was influenced by concerns over a loose fiscal policy, which could continue to put upward pressure on prices. The NBP's cautious stance reflects ongoing challenges in balancing economic growth with inflationary pressures.