NBP to stay put at its meeting on Wednesday – TDS

The Polish central bank (NBP) is widely expected to leave its monetary staus quo unchanged at its meeting tomorrow, according to FX Strategists at ‘Rates, FX and Commodities Research’ at TD Securities.

Key Quotes

“We and the unanimous consensus expect the NBP to keep its policy rate on hols at 1.5% on Wednesday”.

“CPI inflation, after moving up sharply around the start of this year, has stabilised, and was running at 1.9% Y/Y in May. Core inflation, although accelerating, remains muted at 0.9% Y/Y in April. The recent strength of the zloty against both the euro and the US dollar will help keep the lid on inflationary pressures”.

“Growth accelerated to 4% Y/Y in Q1, and should remain strong over the rest of this year, driven by investment recovery as a result of increasing EU disbursements, solid growth in consumer demand, and recovery in the Eurozone”.

“The MPC is happy with the way the economy is performing and expects rates to remain on hold for some time, possibly until the end of 2018, although we see a chance of a hike happening as soon as the end of this year”.