Polish Zloty: NBP language turns cautious after FX pressure – Commerzbank
Commerzbank’s Tatha Ghose notes that NBP Governor Adam Glapinski used G20 remarks to shift towards a more neutral, flexible stance, avoiding earlier dovish hints of imminent rate cuts. With August CPI surprising hawkishly and the Zloty underperforming CE3 peers, the bank is seen on the back foot.
Commerzbank's analyst Tatha Ghose has noted that Poland's National Bank (NBP) Governor Adam Glapinski used the G20 remarks to move towards a more neutral and flexible stance on monetary policy. This shift was observed as he avoided previous hints of imminent rate cuts, signaling a move away from a dovish approach. Although the 9 September Monetary Policy Committee (MPC) meeting is expected to keep rates unchanged, the language used by Glapinski could be insufficient to halt the PLN's underperformance.
Poland's central bank is now positioned defensively due to FX pressure, and this cautious language may not be enough to curb the zloty's decline.
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