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Poland's net inflation for November released last week remained at 0.2 percent year on year. The CPI inflation rate is expected to enter negative territory in December.
The economy is expected to remain in deflation of 0.4% year on year, says Danske Bank. Therefore, the central bank is expected to ease monetary policy by cutting policy rate of 75bp next year.
"This, together with prevailing political uncertainty, nicely dovetails with our trade recommendation of long USDPLN (target: 4.2885, stop: 3.8120, trade initiated on 12 November 2015)", estimates Danske Bank.
