MPC's Dabrowski Expects Rate-Hike Pause To Continue

The Zloty moved away from its session highs versus the Euro as NBP's Dabrowski said the rate-hike pause will continue. EUR/PLN has now resumed losses and last trades at PLN4.6911, down 50 pips on the day, looking to retest session lows of PLN4.6862.

• Dabrowski told Reuters that "we can't say that we've definitely finished (rate hikes), but for now everything looks like this break will continue for a while," albeit he emphasised that it was not possible to determine how long interest rates will remain at the current level. He was optimistic about inflation returning to the target range faster than projected by the NBP.
• Gov't bond yields have stabilised in the wake of their initial upswings. They now sit 11.4-14.1bp higher across the curve.
• WIG20 briefly pierced its 200-DMA but is struggling to make much headway beyond there. The index trades flat at typing, flirting with the aforesaid moving average.