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NBP Expect CPI Growth to Fall Significantly in Coming Months

POLAND

Highlights from the policy statement:

  • The Council judges that the decrease in inflation is supported by the appreciation of the zloty exchange rate.
  • In the coming months, annual CPI growth is likely to fall significantly, while the decline in core inflation will be slower.
  • At the same time, inflation developments in subsequent quarters are associated with uncertainty, related in particular to the impact of fiscal and regulatory policies on price developments, as well as the pace of economic recovery in Poland.
  • The Council judges that the current level of the NBP interest rates is conducive to meeting the NBP inflation target in the medium term.
  • NBP may intervene in the foreign exchange market.

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