No U-Turn For Glapinski, December Hike Not Ruled Out

• Investors were surprised by BBG's headline on Glapinski interview earlier this morning, which said 'everything indicates no need for more polish hikes'.
• The NBP Governor mentioned during his press conference on Wednesday that a December hike was more likely than not.
• Hence, the U-turn has questioned participants.
• However, Glapinski's comments were different from the headlines.
• He talked about the positive and negative sides of a tightening cycle; he specified that rising interest rates is good for savers, and a potential PLN appreciation will also reduce the monthly instalments of Poles with CHF loans.
• The quote 'you will not need to raise interest rates further' cannot be applied to the current policy outlook, and therefore does not discount Glapinski's words during the press conference.
• As for the CEE region, the NBP board has been definitely sensitive to sharp increase in CPI and the recent upward revision in inflation forecasts for 2022.
• A December hike is still likely; the magnitude the hike will be dependent on the November CPI print, coming out on Nov 30.

Link of the interview:
https://tvn24.pl/biznes/najnowsze/adam-glapinski-o...