Societe Generale: No more rate cuts in Poland at least until Q4

Quotes from Societe Generale

• The Polish Monetary Policy Council has cut the key interest rate 50bp to 1.50%, outpacing themarket consensus and our forecast of a 25bp cut.
• The decision also puts the deposit rate at 0.50% and the lombard rate at 2.50%, both record lows. We see this move as a one-off adjustment driven by deeper deflation in Q1, relatively high real rates and the ECB's QE.
• Also, the CPI and GDP projections in the Inflation Report supported rate cuts in March.
• We are convinced that the MPC will now remain in "wait-and-see" mode at least until Q4 this year.