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EU Reassessing How Aggressively To Approach Rule-of-Law

POLAND
  • The European Union is reassessing how aggressively to approach the rule-of-law crisis in Poland after leaders including Germany's Angela Merkel and France's Emmanuel Macron called for restraint (BBG).
  • During the EU Summit last week, Merkel and Macro mentioned their deep concerns about a 'downward spiral' in Polish-EU relations following the recent decision by Poland' constitutional tribunal on Primacy Law.
  • On Friday, NBP member Rafal Sura said that interest rates should gradually return to pre pandemic levels and that it is unlikely that inflation will return within its target rate in the next 12 months.
  • In an recent article, NBP Eryk Lon will hinge his decision on November interest rate moves, which will depend on different factors such as how long inflation will remain above the NBP 3.5% upper tolerance band.
  • Next important data to watch will be October CPI (Prelim), coming out on October 29.
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