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NBP's Dabrowski Says Disinflation Forces Are Stronger Than Expected, Unemployment Data Eyed

POLAND
  • DGP reports that Poland is among several EU states calling for an extension to the time for clearing money from the bloc's Reconstruction Fund. The current schedule assumes that the reforms and investments included in each country's National Recovery Plan (NRP) must be realised by the end of June 2026. Poland continues to have problems with accessing the funds as a key court reform required by the European Commission is stuck in the Constitutional Tribunal, which remains paralysed by an internal dispute. Parliament is expected to vote on a bill which could break the deadlock this week.
  • NBP's Ireneusz Dabrowski told Money.pl that anti-inflationary factors are stronger than what was suggested by the central bank's macroeconomic projections and headline inflation could ease to +5.0%-7.0% Y/Y at the end of this year. This, in his view, may open up space for a rate cut at the end of 2023.
  • Poland's unemployment rate for Q1 and April will cross the wires at 09:00BST/10:00CEST. According to a Bloomberg survey, analysts expect the monthly rate to have edged lower to 5.3% in April from 5.4% prior, which was suggested by preliminary data published by the Ministry of Family and Social Policy earlier this month.

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