2 May 2016
Poland to keep rates on hold – BBH
Analysts at BBH expect the Polish central bank to keep its benchmark rates unchanged at its meeting later in the week.
Key Quotes
“Polish central bank meets Friday and is expected to keep rates steady at 1.5%”.
“It has been on hold at 1.50% since its last 50 bp cut in March 2015. Almost the entire MPC has been replaced this year by the incoming Law and Justice party, but the last piece of the puzzle may fall into place in June when central bank President Belka will also be replaced”.
“With a new head, we think the bank will likely ease in H2. Deflation risks persist with CPI at -0.9% y/y in March and well below the 1.5-3.5% target range”.
Key Quotes
“Polish central bank meets Friday and is expected to keep rates steady at 1.5%”.
“It has been on hold at 1.50% since its last 50 bp cut in March 2015. Almost the entire MPC has been replaced this year by the incoming Law and Justice party, but the last piece of the puzzle may fall into place in June when central bank President Belka will also be replaced”.
“With a new head, we think the bank will likely ease in H2. Deflation risks persist with CPI at -0.9% y/y in March and well below the 1.5-3.5% target range”.