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Dabrowski Flags Policy Tightening Risks That Surround Price Caps

POLAND
  • Bloomberg interview Polish MPC member Dabrowski, who states that he would mull policy tightening if price caps expire, and may hike rates and unwind QE in response.
  • The price caps mentioned by Dabrowski seem to be the 0%-VAT rate on food items (set to expire in March) and the energy price cap that's set to roll off in June. Tusk's new government still yet to decide on a potential extension of these price curbs.
  • EUR/PLN slips on the headline, dipping briefly back to unchanged on the day at 4.3520, thereby erasing the ~0.3% daily gain.

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