Poland: pressure to hike rates will continue to build
The reintroduction of fuel price caps in Poland has eased immediate pressure on policymakers to hike interest rates, which had looked like a close call for the November rate setting meeting. Given the dovish tilt on the MPC, we think there is a case for rates to remain on hold this year. But the arguments for a hike will strengthen when the fuel price caps expire in January and inflation rises further above target.
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