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NBP Expected To Keep Rates Unchanged, Cabinet Reshuffle Eyed Tomorrow

POLAND
  • The National Bank of Poland (NBP) is universally expected to leave interest rates unchanged today, in line with guidance from Governor Adam Glapinski and his colleagues. While it is widely expected that the next move in rates will be a cut, the potential for any imminent adjustments is rather limited, with inflation seen accelerating into the year-end. For more details, see our preview of the outcome of today's MPC meeting. As always, there is no set time for the announcement of the rate decision.
  • Prime Minister Donald Tusk said that four ministers will step down on Friday as part of a Cabinet reshuffle ahead of next month's European election. He will also announce the names of their successors, having suggested that the number of ministries may fall "a little bit." There is speculation that Minister Coordinator of Special Services Tomasz Siemoniak could take on the Interior portfolio in addition to his current role.
  • A source told WP.pl that the main opposition Law and Justice (PiS) told its representatives in regional legislatures that holding coalition talks with the ruling Civic Coalition (KO) will be punished by expulsion from the party. This comes after two PiS politicians defected to the KO-led camp in Podlaskie Voivodeship, leading to the loss of majority in the regional assembly by PiS.

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