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Unemployment Rate Fells To 5.5% In October

POLAND
  • PM Mateusz Morawiecki visits Germany as he meets with Angela Merkel and Olaf Scholz amid crisis at Polish-Belarus border (BBG).
  • Yesterday, Finance Mininster Koscinki said that inflation is mainly driven by external factors outside of the monetary policy realm.
  • However, as demand for the USD remains strong against most of the currencies, hiking rates aggressively could limit the downside risk on the domestic currency.
  • A depreciating currency (i.e. PLN) keeps supporting inflation expectations and may result in a slower convergence towards the NBP inflation target.
  • As a reminder, CPI inflation rose to 6.8% in October, far above the NBP 3.5% upper tolerance band, and is expected to peak at or above 7% In January according to Glapinski.
  • As a reminder, CPI inflation rose to 6.8% in October, far above the NBP 3.5% upper tolerance band, and is expected to peak at or above 7% In January according to Glapinski.
  • This morning, economic data showed that Polish unemployment rate fell to 5.5% in October, down from 5.6% the previous month.

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