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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
POLAND
- Inflationary pressures continue to remain elevated in the CEE region, increasing the odds for another hike by the NBP next month (November 3).
- This morning, economic data showed that PPI inflation continued to surprise positively in September, up 10.2% YoY (vs. 10% exp.), and up from revised 9.6% the previous month.
- Forward rates are pricing in further rates hikes in the coming meetings.
- FRA 3Mx6M is currently trading 90bps above the Wibor 3M, implying that the market is expecting three to four 25bps hikes by January.
- NBP Governor Glapinski refused to comment if the 40bps hike this month represents the start of a tightening cycle.
- Even though most of the NBP board has been in favor of keeping interest rates low while the economic recovery is taking place, odds for another hike in November are clearly not negligible.
- No action from NBP on November 3 could lead to PLN weakness and more selling pressure on the long-end of the interest rate curve (i.e. negative for LT bonds).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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