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NBP To Hike Policy Rate By 25bps

POLAND
  • The NBP is likely to hike its policy rate by 25bps to 6.75% on September 7 to continue its fight against inflation. This move will increase the benchmark to its highest level since November 2002.
  • Inflation continues to accelerate in the CEE region, with Polish CPI surging to 16.1% in August, its highest level since October 1996.
  • Market expectations on the ‘terminal rate’ have been falling in the past two months to 7.5% - 7.75%, with the FRA 6Mx9M currently trading at 7.65%.
  • This morning, finance minister mentioned that Poland has yet to decide whether to introduce windfall tax.
  • Polish Senate votes to appoint Joanna Tyrowicz to MPC

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