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MNI NBP Preview - April 2021: COVID Caseload To Keep Policy Unch

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The National Bank of Poland is expected to keep its reference rate, Lombard rate and deposit rate steady at 0.1%, 0.50% and 0%, respectively, despite rising inflationary pressures as the worsening Covid19 situation is weighing on growth expectations. Even though a rise in economic activity is expected in 2021 following the 2.7% contraction in 2020, uncertainty over the duration of the elevated restrictions imposed by the government is very high and therefore the pace of the recovery remains also uncertain.

Figure 1: Polish inflation nudging top-end of NBP tolerance band

Source: MNI/NBP/Bloomberg

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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