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Inflation To Remain High Longer Than Expected

POLAND
  • In a recent note following the NBP meeting yesterday, ING mentioned that NBP hinted market that inflation may stay higher longer than previously estimated, expecting inflationary pressures to decline only in 2022 (instead of second half of 2021).
  • ING expects Governor Glapinski to sound dovish on Friday during press conference (2pm London time), reiterating that rate hikes are still quite distant.
  • NBP is expected to keep its benchmark rate steady until at least the middle of 2022 based on recent policymakers' speeches.
  • USDPLN has been retracing higher in the past two days after failing to break through its 100D support on Tuesday; the pair is gradually approaching its 50D resistance at 3.83; a break above that level would open the door for a move up to 3.90.

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