March 21, 2025 11:14 GMT
NBP: Litwiniuk Highlights Potential for Activist Rate Cuts in H2
NBP
NBP's Litwiniuk says rates could be cut by more than 100bps in 2025.
That comment from Litwiniuk not their first comment on rates this month - earlier this week they didn't rule out a rate cut before July (although the specific language was potentially softer than that wording suggests - Litwiniuk suggested there was a "non-zero" chance of a rate cut before July)- and highlighted the sensitivity of the MPC to the upcoming labour market data. We also note that the July meeting is when the NBP will be in possession of the next macroeconomic projections update.
- Rate cuts of "more than" 100bps this year is toward the more aggressive end of expectations for the board this year - with most sell-side eyeing rate cuts from Q3 onwards.
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