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Government To Boost Pension Payout By 7% This Year

POLAND
  • This morning, Labour Minister Marlena Malag said in a joint press conference with PM Morawiecki that Poland will increase pension payout by 7% for 2022.
    • The cost of pension boost will amount to >40bn PLN.
    • PM Morawiecki mentioned that Poland has yet to decide whether to extend the inflation shield
  • NBP Governor Glapinski delivered a ‘hawkish’ conference on Wednesday, mentioning that the central bank has 'road wide open' to raise the policy rate up to 4%.
  • NBP could even raise its benchmark rate above 4% if needed.
  • Some MPC members saw high rates impacting Polish economy via loan cost in the January meeting according to the central bank's minutes of the January meeting released yesterday.
  • MPC members saw CPI considerably elevated for 2022, and further risk of wage pressure.
  • Next important data to watch will be inflation data coming out on February 15 (expected to accelerate to 9.5%).

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