The Monetary Policy Council (MPC) has cut banks' mandatory reserve level from 4.5% to 3.5%.
The reduction of mandatory reserves had been expected to come before the end of October. The new level is effective from 1 October.
Poland's banks have long been pressing for mandatory reserves to be cut to levels available to their peers, and future competitors, in the European Union. They had been seeking a cut to the EU's 2%.
Mandatory reserves must be held against customer deposits at banks. A lower reserve requirement allows more deposit and loan expansion.
The council also held all official interest rates at current levels in a decision widely expected by markets.
Source: C E E N e w s
