Central European Daily

In line with prevailing expectations, the Polish central bank (NBP) left interest rates unchanged at 2.50 %. An overall dovish mood of the meeting is reflected in the official press release and underscored by comments of NBP President Belka at the subsequent press conference. While the release merely said that “[If] the incoming data confirm weakening of economic activity and an increase in risk of inflation remaining below the target in the medium term, the Council will start an adjustment of monetary policy”, Mr. Belka was more explicit when he said that “interest rate cuts are very likely”.