Zloty Trades On Firmer Footing Ahead Of NBP Decision

EUR/PLN has moved away from earlier session lows printed at PLN4.6813 and last changes hands -37 pips at PLN4.6882. Should bears manage to force their way through Mar 1 low of PLN4.6620, they would take aim at Dec 26/Jun 21 lows of PLN4.6270/62. On the flip side, bulls initially look for gains towards Feb 22 high of PLN4.7654.

• POLGBs have advanced this morning and last trade 9.2-10.6bp richer across the curve, with some further compression in 10-year POLGB/Bund yield differential seen today. Benchmark WIG20 equity index printed its best levels in nearly three weeks and now sits ~0.3% higher on the session.
• Prime Minister Mateusz Morawiecki yesterday vowed to propose legislation to bring off-budget spending under one roof in a bid to improve the transparency of public finances. State-controlled Bank Pekao commented that the plan may boost liquidity in Poland's domestic bond market.
• The Monetary Policy Council of Poland's central bank is locked in a meeting to decide on interest rates, with the outcome set to be announced tomorrow. The rate-setting panel is widely expected to keep the main monetary policy parameters unchanged. More details can be found in our comprehensive preview.