May 06, 2022 07:18 GMT
- Yesterday, the NBP disappointed market and hiked its policy rate by 75bps to 5.25% (vs. 100bps exp.) despite the strong ‘surprise’ in inflation in April.
- The ‘dovish’ hike has led to some PLN weakness, with EURPLN current testing its 50DMA resistance at 4.70.
- A break above that level would open the door for a move up to 4.7280.
- NBP reiterated in its statement that future decisions on rate hikes will depend on Ukraine situation and economic data (inflation).
- The central bank will act to ensure price stability and may also intervene in the FX market if needed.
- Further price action could be seen today during Governor Glapinski press conference (3pm CET).
- NBP will publish the minutes of its April meeting at 2pm (CET).