Polish Zloty: NBP turns cautious as inflation rises – Commerzbank
Commerzbank’s Antje Praefcke reports that the Polish central bank kept its key rate at 3.75%, while Governor Glapiński signalled no cuts until year-end after previously sounding dovish.
Polish Zloty gains strength as NBP remains cautious amid rising inflation and geopolitical concerns, according to Commerzbank's Antje Praefcke. The central bank maintained its key interest rate at 3.75%, with Governor Adam Glapiński signaling no rate cuts until the end of the year. Despite earlier dovish remarks, Glapiński now states that rate cuts are unrealistic due to high inflation and geopolitical risks.
The Monetary Policy Council will consider rate hikes if inflation and forecasts rise, but the same applies to rate cuts. In the coming months, it will be crucial to observe whether Glapiński and the council will raise the key interest rate if inflation persists.
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