ING’s Frantisek Taborsky reports that the National Bank of Poland (NBP) governor struck a dovish tone after a downside inflation surprise, seeing no need for rate hikes unless Oil prices or fuel caps change. He notes slow wage growth and stable FX support a wait-and-see stance, with the Zloty holding in a 4.225–4.265 range versus Euro without a strong directional story.

NBP cautious while zloty ranges

"The governor of the National Bank of Poland yesterday gave a dovish tone after inflation surprised down on Friday last week."

"The current situation does not require rate hikes for now, according to the governor, but he is leaving the door open if oil prices jump up or the government lifts fuel price caps."

"The zloty has seen less pressure to weaken but remains in the same range of 4.225-4.265 without a big story here."

"But we also heard mention of slow wage growth and stable FX as reasons to wait. Our baseline remains no change in rates for a longer period."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)