Polish Zloty: Inflation re-acceleration weighs on PLN – Commerzbank
Commerzbank’s Tatha Ghose highlights growing challenges for Polish policymakers, citing stretched fiscal plans and accelerating underlying inflation.
Polish Zloty faces pressure from accelerating inflation, according to Commerzbank analyst Tatha Ghose. The National Bank of Poland (NBP) is unlikely to cut interest rates further, as underlying inflation and wage growth have spiked since the Iran war began. Fiscal plans are also stretched, creating challenges for Polish policymakers.
In July, the Producer Price Index (PPI) inflation rate jumped to 2.8% year-over-year, up from 1.9% in June, indicating a shift from deflationary to inflationary pressures. With NBP expected to remain neutral on policy, the strengthening inflation data is likely to weigh negatively on the Zloty.
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