Poland: MPC meeting likely to be a non-event – TDS

In view of analysts at TD Securities, today’s MPC meeting in Poland will likely be a non-event despite the recent upside surprise in inflation.

Key Quotes

“We and the market expect the policy rate to stay on hold at 1.50%. Given the recent upside surprise in headline inflation to 3.4% y/y (above the November Inflation report forecast), we expect MPC hawks to express their concerns.”

“A motion to raise rates might be put forward, but it should not receive more than one or two votes. Overall we think that the NBP's Governor Glapinski will downplay the underlying inflation trend arguing that the rise in inflation will be only temporary.”