6 Mar 2015
Easing cycle over in Poland? – BBH
FXStreet (Edinburgh) - Extra rate cuts by the NBP will depend on the evolution of the consumer prices, suggested the research team at BBH following the recent rate cut by the central bank.
Key Quotes
“The bank raised its 2015 and 2016 GDP growth forecasts, while cutting its inflation forecasts for those years”.
“We note that the bank signalled that the easing cycle was over after its July 2013, after which it kept rates steady for 14 months before the October 2014 cut”.
“The Polish central bank tries to be predictable, but it is not averse to changing policy when circumstances change”.
“If deflation deepens, they could cut again but for the time being, we see steady rates in Poland”.
Key Quotes
“The bank raised its 2015 and 2016 GDP growth forecasts, while cutting its inflation forecasts for those years”.
“We note that the bank signalled that the easing cycle was over after its July 2013, after which it kept rates steady for 14 months before the October 2014 cut”.
“The Polish central bank tries to be predictable, but it is not averse to changing policy when circumstances change”.
“If deflation deepens, they could cut again but for the time being, we see steady rates in Poland”.