Poland: Stable interest rates to stay for long - Rabobank

As widely expected the National Bank of Poland extended its already record long period of stable interest rates by keeping the main policy rate unchanged at 1.50% at yesterday’s meeting, explains the research team at Rabobank.

Key Quotes

“With inflation well below the official target of 2.5%, governor Glapinski reiterated his commitment to a wait-and-see bias that Polish rates should stay on hold for a prolonged period of time, possibly until the end of 2019. Effectively, the NBP dismisses the potentially inflationary impact of the recent depreciation of the zloty, while the economy continues to expand rapidly at 5.1% y/y in the first quarter. Our colleague Piotr argues that this could leave the zloty vulnerable against the US dollar, which is currently supported by rising US bond yields amid expectations that the Fed is set to raise rates three or four times this year.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.