NBP: Governor Says Strong PLN Helps Curb CPI, Reaffirms Hands-Off FX Approach

Governor Glapinski says that PLN exchange rate is impossible to predict and the MPC effectively treats it as an exogenous factor. He adds that recent PLN appreciation is a welcome development because it plays a role in curbing inflation, but adds that surveys show that it is not a major concern for domestic firms. He reaffirms the NBP's general hands-off approach to FX reflected in its reluctance to step into FX markets.

• The Governor notes that FX interventions are approved by the central bank's Management Board rather than the MPC (these are entirely separate bodies, only the Governor sits on both panels). He says that interventions happen extremely rarely and are conducted only to smooth out volatility, as targeting a specific level would be "suicidal".