Weakness of Polish economy to bolster calls for rate cuts

Today’s preliminary estimate of Polish GDP showed that the economy was in a weaker state at the start of the year than many had anticipated. Admittedly, there is a fair amount of uncertainty about whether the data will be revised in the future (probably upwards). But even so, the weakness of economic growth is likely to bolster arguments that further policy loosening is needed. We expect at least one more cut in interest rates this year.