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Ruling Party Mulls Coalition Options, NBP's Duda Says Rate Cuts Will Depend On Data

POLAND
  • Onet reports that the leaders of Poland's ruling Law and Justice party consider it likely that they will not be able to govern alone after the upcoming parliamentary election. They believe that the outcome of the election will be determined at the final stage of the campaign in September, but have already started to explore coalition options. Sources told the news outlet that the party's representatives have been reaching out to lawmakers from the far-right Confederation and centre-right agrarian PSL.
  • In yesterday's interview for wPolsce.tv, NBP's Iwona Duda reaffirmed the conditions for lowering interest rates as inflation in single digits and evidence of a sustainable downtrend in price growth. She said that the MPC will continue to monitor data to determine if these conditions have been met. The parameters of the expected monetary easing - its timing, magnitude and pace - will depend on the trajectory of disinflation in Poland.
  • Poland's final June CPI will be published at 09:00BST/10:00CEST. The flash reading was +11.5% and surprised the market to the downside (0.3pp miss vs. Bloomberg consensus). Current account balance for May will be reported later in the day at 13:00BST/14:00CEST.

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