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Rate Hikes Should Not Increase Loan Risks

POLAND
  • This morning, Governor Glapinski mentioned at Baking Forum in Warsaw that Polish rate hikes should not increase loan risks and that the effects should be limited for indebted households.
  • Glapinski did not give any clarity on the NBP terminal rate during his press conference yesterday, and just reiterated that the central bank is determined to curb inflation and that PLN is currently strongly 'undervalued'.
  • Glapinski added that the NBP may meet twice a month on rates.
  • As a reminder, the NBP decided to raise its benchmark rate by 75bps on March 8 to 3.5%, its highest level since February 2013.

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