NBP unlikely to change policy course in near term, swift wage growth to delay monetary easing

The National Bank of Poland (NBP) is expected not to change its fairly conservative policy course in the near term as inflation is slowly returning to zero at last.

The country’s consumer prices are anticipated to reach positive territory by early next year. Also, swift real as well, as nominal wage growth are likely to delay any further monetary easing.

Poland’s zloty, which witnessed the largest losses through the day in the run up to Republican candidate Donald Trump’s victory in the 2016 United States Presidential election, recovered its fall following the speech delivered by the newly elected 45th President of the States.

Meanwhile, Czech consumer inflation came out higher than expected at 0.8 percent y/y and 0.3 percent m/m. In month-on-month terms, price increase was driven by seasonally higher prices of clothes and footwear and higher oil prices. The latter also contributed to the acceleration of year-on-year inflation.