NBP Holds Rate at 5.75% Citing Geopolitical Risks, Zloty Steady Near 4.30

Poland’s central bank kept its reference rate unchanged at 5.75% on June 2, explicitly citing heightened geopolitical uncertainty and persistent core inflation as reasons to maintain the pause. The decision follows the June 1 report showing the zloty locked in a tight range with EUR/PLN near 4.30 and USD/PLN around 3.95 after the NBP’s October 2023 policy freeze. Markets now face sustained borrowing costs as WIBOR remains above 5.8%, with the zloty supported by carry flows yet exposed to sudden shocks from the Ukraine conflict or global trade tensions. The data-dependent stance signals no rate cuts until inflation and external risks subside.