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Further Rate Hikes Are ‘Necessary’ (Kotecki)

POLAND
  • There were no surprising announcements from NBP Governor Glapinski at the press conference, mainly reiterating that policy tightening will continue until CPI inflation declines.
  • Glapinski added that Poland Q1 GDP growth was around 8% YoY.
  • The NBP published in its minutes from the April’s meeting that CPI is expected to remain ‘markedly elevated’ in 2022 and that it should keep raising interest rates to curb CPI.
  • NBP member Kotecki said in an interview that Poland needs further monetary tightening and that the 25bps ‘portion of the hike’ that was not implemented last week (75bps hike vs. 100bps expected) will likely be shifted to the following meetings.

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