Following today's unchanged (1.5%) policy....>

POLAND: Following today's unchanged (1.5%) policy meeting, Rabobank EM FX

Strategist Piotr Matys said "we remain of the view that the domestic environment

and the structure of economic growth favour a rate hike this year rather than in

2019, as the majority of the NBP led by Governor Glapinski still prefers.

Raising rates gradually sooner rather than later would provide the central bank

with more room for manoeuvre should the outlook for the Polish economy

deteriorate. Keeping rates at the record low for too long may force policy

makers to tighten faster if inflation surprises on the upside. The bar for a

hike is set high, but we would not dismiss the notion that the NBP may have to

seriously consider a shift in its bias in Q2."