PLN: NBP MPC to keep its policy rate on hold at 1.50% - TDS

Analysts at TDS suggest that there is little question that today the NBP MPC will, yet again, keep its policy rate on hold at 1.50%, where it has been since March 2015.

Key Quotes

“Nor is the statement or the press conference likely to say much that is new. The MPC will be largely happy with the way the economy is developing, with growth remaining strong, and CPI inflation well-behaved, running at 2.1% Y/Y in December, down from 2.5% in November.”

“The majority view on the MPC, which Governor Glapinski also adheres to, seems to be that rates can be kept on hold for all of this year, with rate hikes not likely until next year. However, we are concerned about the inflationary impact of a tight labour market and strong wage growth and expect the first hike to come in September of this year.”