Polish MPC plays down talk of tightening

Having left interest rates unchanged earlier today, the Polish MPC struck a dovish note at this afternoon’s press conference in an effort to temper the market’s expectations for interest rate hikes. For our part, we expect the policy rate to remain unchanged throughout this year and next. Elsewhere, comments from the National Bank of Romania’s governor this afternoon suggest that today’s surprise interest rate cut doesn’t mark the end of the easing cycle. We have pencilled in one more 25bp reduction, to 1.50%.