Polish MPC a little less dovish, but nothing to suggest rate hikes

The Polish MPC’s press release, which followed the decision to leave interest rates unchanged earlier today, suggested that the Council is slightly more upbeat on the economy’s growth prospects and even less concerned about deflation than last month. But the overall tone was still dovish and there was little to justify the market’s expectation that interest rates will be raised by year end. For our part, we think the weak inflation outlook means monetary conditions will remain unchanged both this year and next.