Finance
Poland cuts household gas prices, raising chances of lower interest rates
Published by Global Banking & Finance Review®
Posted on May 29, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 29, 2025
1 min readLast updated: January 23, 2026
Poland's energy regulator cuts household gas prices by 14.8%, potentially leading to lower interest rates as inflation targets are met.
WARSAW (Reuters) -Poland's energy market regulator has cut the gas prices that wholesaler PGNiG Obrot Detaliczny charges to households and vulnerable users including hospitals and schools by 14.8%, increasing the chance of more interest rate cuts.
Gas distribution fees remain unchanged, which will result in average gas bills falling by between 8.1% and 11% depending on the volume of consumption, the regulator, URE, said on Thursday.
Gas prices for households are set by the regulator and have a major impact on inflation. Uncertainty over energy prices has been the main factor behind central bank's reluctance to cut interest rates faster.
As a result of the cut in gas prices, inflation may fall close to 2.5%, the mid-point of the central bank's target range, in July, and the central bank may cut rates further, ING economists said on X following the announcement.
"Our current scenario assuming 75 basis points of cuts by the end of the year and to 3.75% in 2026 is the minimum scenario," they said. The rate is currently 5.25%.
(Reporting by Marek Strzelecki and Anna Wlodarczak-Semczuk. Editing by Mark Potter)
Poland's energy market regulator cut gas prices by 14.8% for households and vulnerable users.
The average gas bills are expected to fall by between 8.1% and 11%, depending on consumption.
The cut in gas prices may bring inflation close to 2.5%, which is the mid-point of the central bank's target range.
The current interest rate in Poland is 5.25%, with potential cuts anticipated by economists.
Economists predict a minimum scenario of 75 basis points of cuts by the end of the year, bringing the rate down to 3.75% by 2026.
Explore more articles in the Finance category
