Poland's Fiscal Future: Challenges and Developments

Poland's financial markets face potential challenges as Fitch Ratings predicts an increase in the deficit above 7% of GDP by 2025. Limited scope for interest rate cuts is expected, while Poland plans to sign a major contract for a nuclear power plant with the Westinghouse-Bechtel consortium by 2026.

In a forecast that could impact Poland's financial markets, Fitch Ratings has announced that the country's deficit may exceed 7% of GDP by 2025, surpassing earlier projections. This comes as policymakers brace for economic adjustments.

Monetary Policy Council members indicated on Wednesday a restrained stance on further interest rate cuts. The central bank appears to be in a transitional phase, opting for a cautious 'wait and see' approach regarding future monetary policy adjustments.

In energy sector news, Poland is poised to strengthen its nuclear capabilities by planning to sign a vital contract with the Westinghouse-Bechtel consortium by mid-2026. This development highlights Poland's commitment to diversifying its energy sources.

(With inputs from agencies.)