The National Bank of Poland (NBP) held its benchmark interest rate at 5.25% during its June 3–4, 2025 meeting, as widely expected, following a 50 basis point cut in May. The Lombard and deposit rates were also kept unchanged at 5.75% and 4.75%, respectively. The pause in the easing cycle reflects a cautious stance amid persistently high inflation, resilient economic growth, and uncertainty surrounding global trade policy. Annual inflation eased to 4.1% in May from 4.3% in April - the lowest since June 2024 - but remained well above the central bank’s 2.5% target. Meanwhile, the economy expanded by 3.2% year-on-year in Q1, slightly slower than the 3.4% growth in Q4 2024, which was the fastest since Q3 2022. Labor market conditions also remain tight, with low unemployment and high participation, although enterprise sector employment declined from a year earlier. The NBP emphasized that future policy decisions will depend on incoming inflation and activity data.