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10 Feb 2015
A 50bps rate-cut from the NBP in the pipeline in March? - KBC
FXStreet (Barcelona) - The KBC Research Desk predicts a negative inflation outcome for Poland and hence forecasts a 50 bps rate cut by the NBP in March.
Key Quotes
“[..] the National Bank of Poland, according to comments after its last MPC meeting, is still ready to continue to ease its monetary policy in reaction to negative inflation, notwithstanding solid growth in domestic demand.”
“Unlike the CNB, the NBP still has conventional instruments at hand – i.e., interest rates – through which it can fine tune its policy.”
“Not even the NBP has the exchange rate under control, with the Polish zloty having started to strengthen significantly in reaction to the ECB’s huge monetary expansion.”
“In this respect, Polish figures released this might be very important – especially the January inflation.”
“Hence, because we predict again a very negative inflation figure we expect a 50 bps rate cut at the March meeting.”
Key Quotes
“[..] the National Bank of Poland, according to comments after its last MPC meeting, is still ready to continue to ease its monetary policy in reaction to negative inflation, notwithstanding solid growth in domestic demand.”
“Unlike the CNB, the NBP still has conventional instruments at hand – i.e., interest rates – through which it can fine tune its policy.”
“Not even the NBP has the exchange rate under control, with the Polish zloty having started to strengthen significantly in reaction to the ECB’s huge monetary expansion.”
“In this respect, Polish figures released this might be very important – especially the January inflation.”
“Hence, because we predict again a very negative inflation figure we expect a 50 bps rate cut at the March meeting.”