Polish c.bank leaves rates unchanged, market eyes CPI forecasts
WARSAW, Nov 6 (Reuters) -The National Bank of Poland (NBP) left interest rates unchanged as expected on Wednesday after inflation accelerated in October, as investors waited for its new inflation and economic growth forecasts.
Inflation in October was 5.0%, well above the upper limit of the central bank's inflation target of 2.5% plus or minus one percentage point.
Later on Wednesday, together with the statement following the meeting of the Monetary Policy Council (MPC), new inflation and economic growth forecasts prepared by the central bank will be presented.
However, analysts doubt that they will contribute to a change in the monetary policy stance. The Polish MPC has kept interest rates unchanged since October 2023, with the reference rate at 5.75%.
"The most interesting thing in the MPC statement will be the information about how the NBP projections regarding inflation and GDP have changed," said Piotr Bielski, director of the economic analysis department of Santander Bank Polska.
"I suspect that the changes in the forecasts compared to their version from July were small, which will be the basis for maintaining the current wait-and-see approach to monetary policy and a message similar to the one in previous months."
The market is also waiting for Thursday's press conference with Governor Adam Glapinski, who is to present his assessment of the current economic situation of the Polish economy.
In October he said that Poland may cut rates after the publication of the central bank's next economic forecasts in March, possibly in the second quarter.
This week, other central banks in the region will also meet. On Thursday, the Czech Bank will decide on interest rates, with another cut expected.
On Friday, the National Bank of Romania will make a decision on the cost of credit, and in its case, some analysts predict that interest rates will remain at the current level.
Reporting by Pawel Florkiewicz and Karol Badohal, Editing by William Maclean
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