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NBP Minutes: Policymakers Aim To Keep Financial Conditions As Loose As Possible

POLAND
  • As the rise in CPI inflation is expected to be 'temporary' in all the CEE region, NBP policymakers are all in favour of keeping financial conditions as loose as possible in order to stimulate growth following a difficult first quarter.
  • Further easing might even be justified if the economic outlook were to deteriorate sharply in the near term, including an interest rate cut.
  • CPI inflation rose to 3.2% in March and is expected to surge above the 3.5% upper tolerance band before starting to ease in the second half of this year.
  • Find the minutes of the March 3 NBP policy meeting: https://www.nbp.pl/en/onbp/organizacja/minutes/mi_iii2021en.pdf
  • EURPLN is barely unchanged following NBP minutes and continues to trade slightly above its 100D SMA at 4.53.

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