Poland’s consumer price index (CPI) rose 0.4% month-on-month in line with market expectations, while year-on-year inflation came in at 4.3%, slightly above the projected 4.2% and down from 4.9% in March.
This inflation reading aligns with the rhetoric of many members of Poland’s Monetary Policy Council (RPP), who, following a widely anticipated 50 basis point interest rate cut, have indicated that the easing cycle may not go as deep as forward rate agreements (FRA) markets have been pricing in.
NBP President Adam Glapiński emphasized that the recent rate cut was an adjustment to current economic conditions—not the beginning of a broader rate-cutting cycle. He stated that only a radical development could prompt the council to consider another cut in June.
Author: Piotr Bawolski, CFA, Director of Strategic Clients, Michael / Ström Brokerage House
Source: CEO.com.pl – No Rapid Rate Cuts Ahead: Inflation Reading Backs RPP Caution
