Glapinski Suggests NBP Backloaded Three Rate Cuts, Packed Them Into One

Governor Adam Glapinski says that the MPC essentially packed three 25bp interest-rate cuts into one. The official notes that the panel could have trimmed interest rates by 25bp at each of the past three meetings, but instead chose to accumulate more evidence on the underlying macroeconomic picture before taking action. The Governor further outlines his assessment that inflation and economic activity are cooling faster than forecast.

• Interestingly, Glapinski's comments seem to suggest that yesterday's move in rates was backloaded rather than frontloaded. Prior to the press conference, some analysts were suggesting that the NBP may have delivered a jumbo-sized cut to then pause and observe the impact of monetary easing.
• Glapinski now debates whether yesterday's move in interest rates could be described as "sharp". He says that Polish interest rates remain higher than in the West. Furthermore, the WIBOR has been trending lower for some time now - from this perspective, the NBP merely "caught an apple that matured and fell from the tree".