Zloty Inches Lower, NBP's Tyrowicz Reiterates Hawkish Views

EUR/PLN has extended yesterday's mild gains and last deals +57 pips at 4.3682. A clearance of Jan 17 high of 4.4124 is needed to revive bullish impetus. On the flip side, the focus is on Jan 9 low of 4.3309, followed by Dec 13 low of 4.2935.

• NBP's Joanna Tyrowicz reaffirmed her familiar hawkish views in a LinkerIn post, noting that the central bank's model implies that raising the reference rate by 200bp to 7.75% would significantly increase the odds of bringing inflation to the target. She added that she will keep voting in favour of a 200bp hike until there is evidence that the inflation target could be reached within a "sensible" time horizon.
• POLGB curve has twist steepened at the margin, with yields last seen -0.9bp to +4.6bp, while local FRAs are firmer the margin. Poland will offer PLN6-10bn worth of bonds maturing in Apr '26, Apr '29, Nov '29, Oct '30, Oct '33 and Apr '47 at an auction today.
• Finance Minister Domanski flagged the option of amending the budget later this year and confirmed plans to revise and reduce the capital gains tax.
• The local economic calendar is virtually empty today after the release of a mixed bag of data on Monday.