THE MODERN SYSTEM OF INFLATION CONTROL BY THE NATIONAL BANK OF POLAND IN THE CONTEXT OF A DYNAMIC EXTERNAL ENVIRONMENT

The aim of the study is to comprehensively analyze the current inflation control system of the National Bank of Poland and assess how monetary policy instruments and communication work in a dynamic external environment.The object of the study is the monetary policy mechanism of the National Bank of Poland aimed at ensuring price stability through inflation targeting and the related institutional, instrumental and communication elements.The article describes the current system of inflation control by the National Bank of Poland in the context of a dynamic external environment, in which inflationary impulses are increasingly formed outside the national economy and transmitted through energy and food prices, changes in international trade conditions, capital movements, exchange rate fluctuations, as well as through the interaction of monetary cycles in leading countries.It is determined that the conceptual basis of the policy is the inflation targeting strategy, within which the goal is to maintain inflation, understood as the annual change in the consumer price index, at 2.5 percent with a symmetric deviation band of plus or minus one percentage point in the medium term.It is proven that in the presence of strong external shocks, the effectiveness of such a regime depends not only on timely decisions on interest rates, but also on the ability of the central bank to form inflation expectations through consistent communication and forecasting and analytical support.It is established that the instrumental part of the system is based on the management of short-term financial conditions, where the key role is played by key interest rates and operations that direct market rates to a level compatible with achieving the goal of price stability.It is justified that in conditions of high volatility of external factors, the central bank should maintain a balance between responding to short-term fluctuations in inflation and № 12(22) 2025 630 maintaining a medium-term orientation in order to avoid excessive volatility of financial conditions and losses for the real sector.