Cooling Polish inflation buys time for policymakers
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CENTRAL AND EASTERN EUROPE: A surprising decline in inflation to 3.1% YoY in May from 3.2% YoY in April provides Poland's Monetary Policy Council with breathing room to maintain its wait-and-see stance. The drop was driven by a sharp decrease in food prices and weaker-than-expect
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4 itemsCooling Polish inflation buys time for policymakers
National Bank of Poland preview: May inflation gives time to assess oil shock
Low June inflation highlights Poland’s resilience despite past energy shock
The recent report from ING highlights Poland's ability to maintain low inflation levels even after prior energy shocks, with June's CPI coming in at 2.5% YoY. This positive outlook is driven by falling fuel and food prices, which could shape the direction of the Polish zloty moving forward. Per the full note, the prevailing geopolitical tensions in the Middle East could influence the monetary policy stance of the National Bank of Poland, adding caution to any potential rate cuts this year. Without high-impact events on the immediate horizon, traders should keep a close watch on how these dynamics interact with broader market sentiments.