The National Bank of Poland (NBP) cut its benchmark rate by 25 bps to 4.75% at its August 2–3 meeting, following the same 25 bp cut in July, in line with market expectations. The Lombard and deposit rates were reduced to 5.25% and 4.25%, respectively. The decision was driven by persistently weakening inflation, with headline CPI slowing to 2.8% in August - the lowest since June 2024 - and remaining within the central bank’s target range of 2.5% ±1 percentage point. The Polish economy expanded 3.4% year-on-year in Q2 2025, maintaining a stable pace around 3% since Q2 2024, while the unemployment rate ticked up to 5.4% in July. This decision represents the NBP’s continued adjustment of monetary policy in response to moderate inflation.