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POLAND: IMF Calls For Caution Before Cutting Rates, C/A Balance Eyed

POLAND
  • The IMF's senior representative in eastern Europe called for caution ahead of a potential pivot to interest-rate cuts in Poland, noting that "a primary concern is that wage growth remains exceptionally strong amid an accelerating economy." The official welcomed the decision to phase out inflation shields, while advising that the government should prepare solutions that could be implemented promptly in the event of a fresh price shock to mitigate the impact only on the most vulnerable households.
  • Finance Minister Andrzej Domanski reiterated that the government will implement measures to lower national health insurance contributions by entrepreneurs in 2025. He added that the ruling coalition wants to raise the annual tax-free allowance in this parliamentary term, but this may not happen imminently amid the need to consolidate public finances.
  • Prime Minister Donald Tusk is expected to unveil the name of the candidate for the Polish EU Commissioner during a post-cabinet press conference today.
  • Poland's current account data for the month of June will cross the wires at 13:00BST/14:00CEST.

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