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Poland CPI (Feb.)

The weaker-than-expected Polish inflation figure for February, of 1.4% y/y, means that the MPC is likely to stick to its dovish tone in the very near-term. However, we still think that price pressures will start to build over the coming quarters, pushing inflation above the central bank’s target in the second half of 2018. As a result, we expect the first hike in the policy interest rate before the end of the year.

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