NBP's Maslowska Suggests Continued Monetary Easing Is Likely

MPB's Gabriela Maslowska told Radio Lublin this morning that "it seems that" the trend of lowering interest rates will be maintained but the central bank will remain data-dependent, while nothing can be said about the pace of expected monetary easing ("whether it will [involve cuts] by 25bp or more).

• Maslowska said that the NBP is flexible and shapes monetary policy in such a way to achieve the +2.5% Y/Y +/- 1pp inflation target while avoiding suffocating the economy, which "we cannot afford".
• The official played down the zloty's reaction to the central bank's September rate decision, noting that it was purely due to speculative activity, while "serious capital" is not reacting so quickly.
• Maslowska said that headline inflation should be around +6.6%-7.0% Y/Y in October but may temporarily rebound to slightly above +7.0% Y/Y at the end of the year due to an increase in fuel prices and base effects.
• She noted that available data suggest that Polish GDP may have grown 0.1% Y/Y in Q3 and the NBP expects further gradual recovery. Growth should accelerate to more than +2.0% Y/Y next year.