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Polish Equities Supported By Recent PLN Strength

POLAND
  • Polish Deputy PM Jaroslaw Gowin to speak with U.S. Trade Representative Katherine Tai today; talks will include U.S. and European trade policy toward China, WTO overhaul, U.S. investments in Poland's technology industry (BBG).
  • PLN has been appreciating in the past few days as higher than expected inflation print could imply sooner rate hikes from the NBP, which has been supporting Polish equities (WIG20 index).
  • On Monday, NBP policymaker Lukasz Hardt wrote in an article that Polish inflation jump is not temporary and requires a 'monetary reaction'. MPC member Grażyna Ancyparowicz said that the earliest time for thinking about rate hike is October or November.
  • For now, the majority of the board still aims to keep interest rates low in order to stimulate the economic recovery as the uncertainty remains elevated.
  • There are no important economic data coming out today.

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