Page 18 - Sample PRO weekly report Poland

Dovish voices persist amongst Polish rate setters
Poland's Monetary Policy Council (MPC) maintains its view that the recent inflation surge is temporary, the minutes of the last rate setters' meeting released on April 21 showed, although some dovish voices persist.
The MPC has long insisted that the risk of the CPI exceeding the National Bank of Poland's (NBP) 2.5% inflation target in the mid-term is “limited," and that remains the consensus. That said, some members of the board are open to considering a rate hike should inflationary pressure in the coming quarters prove stronger than current expectations.
Those dovish members also noted that negative real interest rates are impacting savings and the pricing of assets. The benchmark interest rate sits at a record low of 1.5%; March inflation came in at 2% y/y.
However, other members countered that negative real interest rates are not the most important factor influencing savings and assets. They also noted that credit rates remain positive. A hike in the benchmark could, on the other hand, dampen company investment plans, they warned.
The MPC maintained that current policy supports economic growth. After GDP growth slowed to a three-year low of 2.7% in 2016, the economy is expected to pick up speed this year.
This PDF is intended for Ben Aris at Intellinews.
Systematic forwarding is a breach of subscription compliance obligations.
Written by bne IntelliNews, New Sparta Media and Emerging Markets Direct Media Holdings LLC. We make no warranty, express or implied, as to the accuracy or completeness of the information. The views expressed reflect our best judgment as of the date of publication and are subject to change without notice. Opinions are not necessarily those of New Sparta Media, Emerging Markets Direct Media Holding LLC or its affiliates. New Sparta Media and Emerging Markets Direct Media Holdings LLC and take no responsibility for decisions made on the basis of these opinions. Unauthorized redistribution of this information is strictly prohibited.