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Glapinski Says That Recent PLN Weakness Not Seen As Pressure To Hike

POLAND
  • The recent PLN weakness has questioned participants if the NBP will be pressured to hike rates as depreciating currency tends to support inflation expectations.
  • Glapinski said in an interview this morning that the current level of PLN is not seen as a pressure to hike.
  • It is still very likely that the NBP will continue its tightening cycle in December; what Glapinski meant is probably that the NBP does not have to hike more aggressively due to recent PLN weakness.
  • Several members of the NBP board mentioned that the NBP should continue to raise interest rates amid rising inflationary pressures, which are expected to remain elevated until January 2022.

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