March 2026 interest rate cut – what could be the next decisions of the Monetary Policy Council?
Early March brought important news for those planning to purchase a property as well as for borrowers. The Monetary Policy Council decided to cut the interest rates of the National Bank of Poland by 0.25 percentage points, bringing the main reference rate down to 3.75%. This is the first decision of this kind in 2026 and another step in the rate-cutting cycle that began in 2025. For the real estate market and prospective homebuyers, this means one thing above all: mortgage loans may gradually become cheaper.
Interest rate cuts in 2026 – what is behind the March decision?
Interest rate decisions are primarily based on the economic situation and the level of inflation. In recent months, inflation in Poland has been clearly declining and has approached the NBP’s inflation target. At the same time, economists pointed out that maintaining high interest rates under such conditions could excessively limit investment and economic activity. For this reason, many analysts had expected a March rate cut even before the MPC meeting.
Ultimately, the Council opted for a moderate move – a 0.25 percentage point reduction, intended to support the economy while minimizing the risk of a renewed increase in inflation.
Following the decision of the Monetary Policy Council on March 4, 2026, the National Bank of Poland’s interest rates are as follows:
- reference rate: 3.75% per annum
- lombard rate: 4.25% per annum
- deposit rate: 3.25% per annum
- rediscount rate: 3.80% per annum
- discount rate: 3.85% per annum
Are further rate cuts possible in 2026?
According to many economists, the March rate cut may open the door to further monetary policy easing in 2026. Declining inflation and a more stable economic environment create conditions in which additional rate cuts in the coming months become a realistic scenario.
However, this does not mean that cuts will occur quickly or regularly. Future decisions of the Monetary Policy Council will depend on many factors, including the economic situation in Poland and Europe, the pace of inflation decline, energy prices, and the exchange rate of the Polish złoty. Global developments also play a role. Fluctuations in oil prices, geopolitical tensions, or worsening sentiment in global markets may lead the MPC to act cautiously and gradually.
From the perspective of the real estate market, this means one thing: although financing conditions for purchasing property may gradually improve, the situation still requires close monitoring. If the downward trend continues, the second half of 2026 may become a period of greater mortgage availability for many buyers.
Interest rate cuts and the real estate market in 2026
Interest rate cuts almost always affect the housing market. Lower borrowing costs increase financing availability, which translates into growing interest in purchasing property.
As a result, several typical trends can be observed:
- Higher demand for housing – cheaper mortgage loans allow more people to afford property purchases, increasing the number of potential buyers on both the primary and secondary markets.
- Potential upward pressure on prices – if demand grows faster than supply, property prices may gradually rise.
- Increased investor interest – with lower interest rates on bank deposits, part of the capital shifts to the real estate market, which is perceived as a stable investment.
- Better conditions for new developments – for developers, lower interest rates mean cheaper project financing, which may encourage the launch of new investments in the coming quarters.
Check current apartment offers from Activ Investment!
Are you planning to buy an apartment in Kraków, Katowice, or Warsaw? Now it may be more worthwhile than ever. Discover Activ Investment developments – offering prime locations, functional layouts, and attractive prices. Choose a property perfectly suited to your needs!
