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NPB Posturing Over Negative Rates May Be Focused On Weakening PLN

POLAND
  • MPC's Rafal Sura says could get behind a drive by Glapinski to cut rates further
  • if cuts could be shown to offer a positive boost to the economy, even though current rates now appear "optimal,"
  • majority of the MPC has stood against the concept of negative rates for some time
  • and growth is showing signs of a decent 2021 pickup.
  • Hence, with little room to operate, dovish commentary from the MPC towards 1Q21 will most likely be aimed at weakening the PLN alongside FX sales
  • and may not actually end up in negative rates
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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