In Poland, inflation remained unchanged on a monthly basis according to the preliminary reading from the National Bank of Poland (NBP), despite the previous month’s reading of 0.5 percentage points, with expectations for this month set at 0.2 percentage points. On a yearly basis, inflation held steady at 4.7%, despite forecasts predicting a slight increase to 4.8%.
Although the surprise results may not drastically change the market outlook, they likely support the dovish rhetoric of the Monetary Policy Council (RPP) and the majority of market participants, who expect the beginning of a rate-cutting cycle around the summer. This contrasts with the rhetoric of NBP President Adam Glapiński, who has stated that the rate-cutting cycle could start as early as 2026.
Author: Piotr Bawolski, Director of Strategic Clients, CFA, Michael / Ström Brokerage House
Source: https://ceo.com.pl/inflacja-w-polsce-nizsza-niz-oczekiwano-86850