The Monetary Policy Council (RPP) surprised the market by cutting the reference interest rate by 25 basis points. This decision defied consensus expectations, which had forecast no changes at this time and anticipated any rate reductions only in the latter part of the third quarter. In its post-meeting statement, the Council pointed to a lower inflation projection than previously assumed in March.
The next interest rate decision is scheduled for early September, and further rate cuts are expected—indicating that a full easing cycle may now be underway.
Author: Szymon Gil, Investment Advisor, CIIA, Director of Strategic Clients, Michael / Ström Brokerage House
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Source: CEO.com.pl
