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Supreme Court Once Again Fails To Make a Verdict on CHF Mortgages

POLAND
  • Poland's Supreme Court once again failed to make a verdict on CHF mortgages and decided to ask the European Court of Justice on how to proceed amid doubts over Polish judiciary revamp according to Bloomberg.
  • This was expected by the market due to disagreements between 'old' and 'new' judges as a number of old judges in the Supreme Court believe that new judges were appointed illegally as a result of reforms by the ruling Law and Justice (PiS) party (Reuters).
  • Hence, there has not been any significant impact on PLN, which continues to be mainly driven by forward rates.
  • Traders are speculating that NBP policymakers will have to hike earlier than expected to curb inflationary pressures, following the positive surprise in inflation this week.
  • On the other hand, Poland 10Y yield continues to reach new highs, breaking above the 1.90% level today and approaching its key resistance at 2% (May 17 high).

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