National Bank of Poland likely to keep policy rate on hold in April

The National Bank of Poland is set to meet tomorrow for its interest rate decision. According to an Erste Group Research report, the policy rate is likely to remain flat and rhetoric of stability rates to be sustained.

Inflation rate continues to be below the target of 2.5 percent while economic growth is likely to sustain strong dynamics. In March, the inflation rate rebounded to 1.7 percent, according to flash estimate. Similar dynamics are expected to be seen in the months ahead. Core inflation has been showing signs of acceleration as well.

“Fiscal expansion is likely to bring some inflationary pressure. However, we believe that even in case some upward risks materialize inflation is not likely to overshoot the target so that policy rate is changed this year”, added Erste Group Research.