Poland's shift in economic policy expected after parliamentary election

Poland's main right-wing opposition party, Law and Justice (PiS), is leading in the polls and may therefore be able to form a new government following the election on 25 October. The new government will have limited scope for fiscal easing. However, measures proposed by PiS directed at low-income families and SMEs may impact domestic demand. The introduction of these measures would be accompanied by market uncertainty.

"We expect the PLN to weaken in the weeks after the election, at least until the formation of the new government. The impact on the bond market is still unclear. Poland's National Election Commission (PKW) will announce the list of parties elected to parliament on Monday 26 October and the allocation of parliamentary seats a day later",says Societe Generale.