The zloty should be unaffected by Poland's rate hike of 100 basis points — Commerbzank

The Polish central bank is likely to increase policy rates by 100 basis points (bps) to beat the risky inflation pressures it has experienced for more than a year.

May 05, 2022 - 04:15 PM 268 views

The zloty should be unaffected by Poland's rate hike of 100 basis points -Commerbzank

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© The zloty should be unaffected by Poland's rate hike of 100 basis points -Commerbzank

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The Polish central bank is likely to increase policy rates by 100 basis points (bps) to beat the risky inflation pressures it has experienced for more than a year. This outcome has already been factored in, so the zloty is expected to brush off the ruling, according to Commerzbank experts.

 Rise of 100 basis points (bps) for NBP.

 Although all CEE central banks now have to deal with increased actual economic risk from the Russia-Ukraine crisis, which may complicate the decision for some MPC members, Poland's 12.3 percent inflation rate still supports a substantial rate hike. However, based on individual commentaries, it appears that the majority of MPC members prioritize inflation risk over GDP risk.

 Today, an increase of 100 basis points (bps) seems logical, but this should be factored-in and should prove negative for the Zloty.

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