Deflation to keep Poland MPC will in wait-and-see mode this year

The Polish Monetary Policy Council decided to leave its benchmark reference rate at 1.5%, which is in line with market consensus. The MPC will remain in wait-and-see mode this year, mainly due to deflation. Deflation will probably disappear in Q4 this year, which may impact discussions on monetary policy tightening. 

"We expect monetary policy tightening in Q2 next year. At this point, investors are more interested in changes to the central bank's framework and possible candidates to the new council." said Societe Generale