Central European Daily

Yesterday, the meeting of the National Bank of Poland (NBP) met our expectations and brought no major news (the most surprising one probably was holding the June meeting one day earlier). The central bank reiterated that it would keep interest rates at the all-time low until the end of the second quarter at least. However, President Belka said to journalists that NBP was in what he called “a dream situation” characterized by accelerating growth and low inflation and was therefore in no hurry to change interest rates. We expect that with the new forecast in hands (on 3rd March), the central bank can prolong its forward guidance and say that its rates may stay at current levels until the last quarter of this year at least. Regarding recent emerging markets turmoil, Belka said that although the NBP watched it closely, he did not expect it would be forced to act as the Polish economy was well-balanced (which is our view as well).