NBP holds mortgage rate at 3.75% as Middle East conflict stalls cuts
Poland's central bank kept its benchmark interest rate unchanged at 3.75% for the second consecutive month on May 6, citing uncertainty from the Iran conflict and rising energy costs that pushed April inflation to 3.2%.
Poland's National Bank (NBP) announced on May 6, 2026, that it would hold its reference rate steady at 3.75% for the second month running, pausing the easing cycle it began in March when it delivered a 25-basis-point cut. The decision affects all Poles with variable-rate housing loans tied to WIBOR, the interbank rate that tracks NBP policy moves.
Why the pause
The central bank pointed to two factors: the Middle East conflict (which erupted in early March 2026) has rattled global energy markets and driven domestic fuel prices higher, while April's inflation reading came in at 3.2%—near the top of NBP's 1.5–3.5% target band and up from 3.0% in March. Governor Adam Glapiński noted that inflation is now "unlikely to return to the 2.5% target before the end of next year," a marked change from the more optimistic tone struck in March.
The lombard rate remains at 4.25% and the deposit rate at 3.25%. Markets had expected the hold, and analysts now predict rates will stay at 3.75% through at least the end of 2026.
What it means for you
If you have a złoty mortgage or are planning to take one, monthly repayments tied to 3-month or 6-month WIBOR will stay elevated for longer than borrowers hoped in early spring. A 500,000 PLN loan at WIBOR + 2% margin translates to roughly 4,100–4,300 PLN per month at current levels; another rate cut would have shaved 50–70 PLN off that bill. For foreigners earning in USD or EUR, the freeze is less painful if your salary keeps pace with the stronger złoty, but any weakening of the PLN against your home currency will squeeze your złoty purchasing power further. If you're considering refinancing or switching to a fixed-rate product, now may be the time to lock in before geopolitical risk pushes rates higher.
