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CPI Inflation Standing At Highest Level Since November 2000

POLAND
  • Yesterday, economic data showed that inflation accelerated slightly less than expected to 9.2% YoY in January (vs. 9.4% exp.), up from 8.6% the previous month.
  • Overall, inflationary pressures remain elevated in the CEE region, which resulted in a few ‘hawkish’ comments from policymakers.
  • This week, New MPC member Ludwik Kotecki commented on Bloomberg that NBP must be ‘more aggressive’ on rate hikes.
  • Next important data to watch will be average gross wages and PPI inflation coming out on February 18.
  • With the FRA 3Mx6M currently trading at 125bps above the Wibor 3M, market is currently pricing in a ‘terminal’ rate at 4%.

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