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NBP Expected To Remain On Hold on Thursday (July 8)

POLAND
  • Last week, the slight deceleration in inflation in June (from 4.7% to 4.4%) is very likely to push NBP policymakers to keep interest rates steady at the next meeting on July 8 (0.1%).
  • Even though some hawkish members are pushing for a symbolic hike on Thursday (i.e. Gatnar and Zubelewicz) to curb inflationary pressures, the majority of the board still aims to maintain financial conditions as loose as possible to stimulate the economic recovery.
  • July CPI print in addition to the NBP summer inflation projections will be key for policy outlook.
  • Governor Glapinski will hold an online press conference on Friday 2pm (London time).
  • Today, Polish Economic Institute will debate about state investments at 10am (London time), and Parliamentary committee will discuss about the effects of state aid granted to companies hit by pandemic (6pm, London). BBG.

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