NBP could refrain from easing further this week – TDS

FXStreet (Edinburgh) - Strategists at TD Securities believe the NBP will keep its monetary policy unchanged in this week’s meeting.

Key Quotes

“At its MPC meeting ending this Wednesday, 15 April, we, in line with the unanimous consensus, expect the National Bank of Poland (NBP) to keep its policy rate on hold at 1.5%”.

“There are a number of scenarios in which we think we could see further rate cuts, e.g. if Polish growth slows; if deflation deepens; or if the zloty strengthens too much against the euro”.

“The current level of EURPLN around 4.012 is unlikely to cause the MPC much concern”.

“However, we think a further fall in EURPLN is quite possible, particularly given the background of Eurozone QE”.

“The press statement from Wednesday’s MPC meeting will be scrutinized for clues as to how concerned MPC members are about continued EURPLN strength and whether rate cuts would be the appropriate response”.