National Bank of Poland likely to keep interest rate on hold in September

The Polish central bank is set to meet this week for its policy decision. According to an Erste Group Research report, the National Bank of Poland is expected to keep the key interest rate on hold at 1.5 percent.

Recent stabilization of inflation at 2 percent year-on-year indicates that inflationary pressure continues to be limited, underpinning the dovish stance of the MPC. In the months ahead, the headline inflation is mainly expected to fall below recently observed figures, due to a base effect and lower food price dynamics.

“In our view, the probability of a rate change remains low and the MPC will most likely maintain its dovish stance even until the end of the next year”, added Erste Group Research.