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Morning Summary: NBP To Remain On Hold Until Mid-2022

POLAND
  • Covid daily new cases continue to drop with the 7D SMA falling from 7,700 to 5,000 in the 7 days; therefore, PM Mateusz Morawiecki announced the gradual reopening of Poland economy last week.
  • As expected, the NBP kept its policy rate on hold at 0.1% yesterday and will continue to guide for policy rates on hold at least until the middle of 2022, with 1 to 2 hikes expected to happen in H2 2022 based on sell-side estimates.
  • Policymakers aim to keep financial conditions as loose as possible in order to stimulate the economy after a difficult first quarter. In its statement, the NBP mentioned that it will also continue its QE program and repeated that it may intervene on the FX market.
  • NBP Governor Glapinski will discuss economic situation in online press conference on Friday 2pm (London time).

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