Zloty Advances As Dust Settles After Last Week's MPC Meeting

EUR/PLN has come under light pressure and last deals -104 pips at 4.4458, with NBP musings still dominating locally. From a technical perspective, the low print of Jul 4 at 4.4138 remains the initial bearish target. POLGB yields are lower, curve runs steeper, with the space building on last week's post-NBP moves.

• MPC's Ludwik Kotecki doubled down on his appeal to colleagues from the rate-setting panel not to loosen policy ahead of time, which he said would be the "gravest mistake." The official told Biznes24 that it would be a "catastrophe" if the central bank was forced to unwind premature monetary easing and resume the rate-hike cycle. He said that "indicating that [rate cuts] are perhaps the right direction now is ok" but a confirmation of disinflationary trends is needed to warrant lowering rates.
• NBP Governor Adam Glapinski will testify to parliament on the central bank's activities in 2022 in late evening hours on Wednesday, according to the schedule on the lower house's website. He will likely defend the NBP's record in fighting inflation, trying to push back against sharp criticism of opposition lawmakers.