Free Trial

ING See Limited Scope for NBP Easing

POLAND
  • They now see limited scope for NBP monetary easing and most likely no rate cuts in 2024. ING see the very high increase in core inflation remaining a major problem, and companies will also continue to pass on high wage growth to consumers. This, and consumer demand growth, will most likely mean that core inflation will remain high in MoM terms.
  • ING expect core inflation to stabilise or even increase to around 4.5% YoY at the end of 2024. Headline inflation should rise to around 5.5% YoY at the end of 2024 and to 6.5% in the first quarter of 2025.
  • This does not provide room for rapid NBP rate cuts. It also most likely means that the overall scale of NBP easing will be smaller than for other countries within the region.
131 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • They now see limited scope for NBP monetary easing and most likely no rate cuts in 2024. ING see the very high increase in core inflation remaining a major problem, and companies will also continue to pass on high wage growth to consumers. This, and consumer demand growth, will most likely mean that core inflation will remain high in MoM terms.
  • ING expect core inflation to stabilise or even increase to around 4.5% YoY at the end of 2024. Headline inflation should rise to around 5.5% YoY at the end of 2024 and to 6.5% in the first quarter of 2025.
  • This does not provide room for rapid NBP rate cuts. It also most likely means that the overall scale of NBP easing will be smaller than for other countries within the region.