Poland’s finance minister pushes for rate cuts to spur investment

Poland’s finance minister, Andrzej Domanski, criticised communication issues with the central bank while advocating for lower interest rates to boost investment.

His comments followed an unexpected statement from central bank Governor Adam Glapinski, who indicated that monetary easing could be delayed until 2026, sparking political controversy.

Domanski emphasised that lower rates could support investments and help revive economic growth, which unexpectedly contracted by 0.2 per cent in Q3 2024. He expressed confidence in a 4 per cent GDP growth forecast for next year, despite the current slowdown.

The finance minister also acknowledged the government’s concern over rising defence spending, which is set to reach 4.7 per cent of GDP in 2025, suggesting the issuance of special defence bonds to finance the military plan.

Attribution: Bloomberg

Subediting: M. S. Salama