Adding to dovish comments by monetary policy committee members, the statement following today’s decision to leave interest rates on hold in Poland points to a prolonged pause in rate changes. The central bank’s expectation that currently high inflation will fall back to target in the medium term, once the impact of tax changes and high global commodity prices drop out of the calculation, seems plausible and we expect interest rates to remain on hold at 4.5% until the end of 2012.