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NBP Likely To Continue Its Tightening Cycle Next Month

POLAND
  • European Council President Charles Michel is set to meet Polish Prime Minister Mateusz Morawiecki in Warsaw to discuss the migrant crisis on the border with Belarus (BBG).
  • NBP member Cezary Kochalski mentioned earlier in an interview (Biznes24) that inflation is expected to peak in Q1 2022 at 7%/8% before starting to edge lower.
  • Yesterday, NBP member Rafal Sura said that NBP may need to rise its policy rate above 1.5% to combat inflation.
  • The NBP board has clearly sounded more 'hawkish' lately and the central bank is likely to continue its tightening cycle at the next meeting next month; the magnitude of the hike will strongly depend on November CPI print (coming out on Nov 30).

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