Created
: 2024.11.06
2024.11.06 19:26
Poland's central bank (NBP) will announce its monthly interest rate decision today. It is unanimously expected that the CB will not change its base rate or guidance today, Commerzbank's FX analyst Tatha Ghose notes.
"Policymakers will likely cite the 5% inflation rate (last headline reading; last core reading was 4.3%) as the reason not to consider rate cuts. At this time, the zloty exchange rate is also weak from rising global market risk aversion, which adds further justification for policy caution. The underlying reality, however, is that Polish inflation, like inflation in many other EU countries, has already moderated to close to target on seasonally-adjusted month-on-month basis."
"A recent upward spike from the unwinding of pandemic era energy and food pricing measures had almost negligible impact and quickly settled down. In this environment, there is no real justification for maintaining a 5.75% interest rate, in particular as the real economy has entered a soft patch. But, NBP's monetary policy is basically 'politicized', with (governor) Adam Glapinski's MPC faction digging its heels in against rate cuts since the time its political opposition came to power."
"We anticipate nothing else but a repetition of such points today and at Thursday's press conference. We maintain that this artificially held hawkish monetary stance should not be working positively for the zloty's valuation as it represents a breakdown of proper monetary policy - it should act as a drag, instead."
Created
: 2024.11.06
Last updated
: 2024.11.06
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy