WARSAW, Oct 8 (Reuters) – Poland's central bank cut its main interest rate by another 25 basis points to 4.50% on Wednesday after inflation eased further, wage growth slowed and the government extended a freeze on energy prices until the end of the year. Most analysts polled by Reuters – 18 out of 30 – had expected the cost of borrowing to remain unchanged, but the other 12 had predicted another 25-basis-point cut. Last month, the bank cut its main interest rate by 25 basis points, as expected, pointing to a decline in inflation. But it cautioned against loose fiscal policy and increased wage growth, and said further decisions would be made on a case-by-case basis. "An interest rate cut in October was not in our baseline scenario, but we were very much expecting it," wrote Piotr Bujak, chief economist at PKO BP bank, in a commentary on Wednesday's decision. "Inflation and wage data, as well as some economic activity indicators, have recently been soft, encouraging a more rapid adjustment of monetary policy parameters." In September, the price growth rate was 2.9% year-on-year compared 2.9% in August, which again remained within the central bank's inflation target of 1.5%-3.5%. Wage growth fell to 7.1% in August, even though analysts had expected it to rise, and the data was seen as crucial for further decisions by Polish central bankers. According to analysts, the October cut may not be the last this year, and further decisions of the Monetary Policy Council will be influenced by the central bank's new forecasts. In November, the MPC will receive a new inflation projection. The market is also waiting for Thursday's press conference of National Bank of Poland Governor Adam Glapinski, who will present the justification for the MPC's decision. "However, I don't think the NBP governor will clearly signal another move at tomorrow's press conference at the next meeting in November," said Bujak of PKO BP. "However, if the data for next month is dovish and the NBP's new projection for GDP and inflation also indicates room for interest rate adjustments, then one more rate cut this year and a continuation in 2026 cannot be ruled out." (Reporting by Pawel Florkiewicz and Karol Badohal;)
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