Zloty Unfazed By NBP's Repetitive Statement, Focus Turns To Presser

The zloty has been unfazed as the NBP decided to leave interest rates unchanged and released another uninspiring statement, which reiterated all the familiar tropes from the previous communique. The central bank still expects inflation to "gradually" return to the target and sticks with its wait-and-see approach, as future interest-rate decisions will depend on upcoming data. We may learn more from Governor Glapinski's press conference tomorrow.

• Recent data have fanned NBP rate-cut bets and encouraged dovish MPC members to be more vocal about their expectations of quicker disinflation and larger scope for loosening policy by the end of the year. Among those was Henryk Wnorowski, a relative moderate among the doves, who predicted single-digit inflation by August and said a discussion on cutting rates could follow.
• EUR/PLN clings onto the bulk of its earlier gains and last changes hands +87 pips at PLN4.4841, with familiar technical levels intact. POLGBs have trimmed gains, likely on the lead from selling impetus in core markets.
• Interestingly, there has been an upward adjustment to the local FRA curve after the release of the statement, which allows for a retracement of a downshift seen early doors. This suggests that some participants may have been looking for the addition of some new explicit dovish overtones to the statement.
• The Supreme Court's decision to defy the Constitutional Tribunal, overturn presidential pardon and reopen a case against Interior Minister Mariusz Kaminski is getting some broader coverage now. The President will address the nation tonight and may comment on the matter.