Poland’s central bank cut borrowing costs on Wednesday, lowering its benchmark rate by 25 basis points to 4.75%, matching forecasts, EuroNews.com reported. This came after inflation eased to 2.8% in August, marking the lowest level since summer 2024. The total is also dramatically lower than the peak of over 18% seen in 2023. The public sector deficit for this year has been revised up to 6.9% of GDP, from a previous 6.3%. In 2026, the budget creates a projected deficit of 6.5%, notably as Poland plans to spend more on defence.

Polish manufacturer 7Anna, owner of the cycling brands Rondo, NS Bikes and Creme Cycles, has filed for bankruptcy. A Polish industry leader in recent years, the 24-year-old company had become known for its diverse range of bikes, from Rondo's gravel bikes to Creme's urban riders, Bike Europe reported. The news was first reported by local media Polityka, though apparently leaked court documents had already revealed the Chapter 11 filing. "The series of blows that hit us were too hard. Sometimes you have to fall to rise stronger," the CEO Tomasz Cybula told Polityka.

Two Polish policymakers threw their weight behind an interest rate cut of as much as 50 basis points next month, a day after central bank Governor Adam Glapinski unexpectedly pivoted toward monetary easing, Bloomberg News reported. The governor’s self-described “radical shift” in the outlook for interest rates continued to depress Warsaw-listed stocks and the zloty on Friday. The Polish currency has weakened 2.2% against the euro over the last two days amid a sharp global selloff stoked by new US tariffs. Glapinski’s all-or-nothing style is hard to grasp for financial markets.

Hungary's central bank-linked foundations are facing renewed scrutiny over their investment practices after a scathing report from the State Audit Office (ASZ) triggered a sell-off in assets linked to their portfolio, IntelliNews.com reported. The scandal has spread to Polish-based real estate developer Globe Trade Centre, listed on the Warsaw Stock Exchange. After the report by ASZ, yields on a 2026 euro bond issued by the company surged from 8.4% to 13% in a week, and its shares fell 7%.

Poland’s central bank refrained from cutting interest rates for another month as policymakers’ rhetoric turned more hawkish despite a softer-than-expected inflation print in December, Bloomberg News reported. The Monetary Policy Council kept its benchmark at 5.75% on Thursday — the level where it’s been since late 2023 — in line with the forecasts of all 32 economists surveyed by Bloomberg. Inflation — at 4.7% in December — has remained above the central bank’s tolerance range for six months and policymakers are concerned it will stay elevated in the quarters ahead.

The Polish government’s decision to reduce energy prices only until next September has “complicated” the outlook for inflation and effectively delayed the timing of interest rate cuts, according to the central bank, Bloomberg News reported. The country’s Monetary Policy Council will likely delay discussions over rate reductions until at least October, which could push back cuts into 2026, Governor Adam Glapinski said on Thursday. The MPC kept its benchmark unchanged at 5.75% during this week’s meeting.

The Polish construction industry is facing its third crisis since the country joined the EU in 2004, with over 700 companies declaring bankruptcy in 2024, a 40% increase from the previous year, the Warsaw Business Journal reported. Small firms, especially in installation, renovation, and general construction, are struggling the most. Key factors include delays in disbursing funds from the National Reconstruction Plan (KPO), stagnation in railway investments, and slow progress in energy transformation discussions.

Poland extended its period of interest-rate stability to one year after inflation picked up beyond the central bank’s tolerance range, Bloomberg News reported. The Monetary Policy Council kept its benchmark at 5.75% in line with the forecasts of all 35 economists surveyed by Bloomberg. The decision comes after regional peers in the Czech Republic and Hungary both reduced rates and the Federal Reserve eased its monetary policy for the first time in four years with a half-point rate reduction.