May 05, 2022 - 04:15 PM 268 views
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.
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.