The National Bank of Poland (NBP) cut its benchmark rate by 25 basis points to 4.5% at its October 7–8 meeting, marking the third consecutive reduction and surprising markets that had expected a pause. The central bank also trimmed the Lombard and deposit rates to 5.00% and 4.00%, respectively. Moderate inflation and slowing wage growth provided room for policy easing. Annual inflation remained stable at 2.9% in September, unchanged from August, within the central bank’s 1.5%–3.5% target range. Wage growth fell to 7.1% in August, missing market expectations. Fiscal policy remained relatively prudent, with the government extending the freeze on energy prices until year-end, alleviating cost pressures on households and businesses.