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)
