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Poland’s MPC stays dovish, but rate hikes on the cards in 2018

Poland’s MPC left interest rates unchanged today and the press statement and conference that followed struck a dovish tone. While headline inflation is likely to edge down in the final months of this year, we expect a pick-up in core inflation to cause the headline rate to start rising again in early-2018. This in turn is likely to prompt the start of a tightening cycle, probably by around the middle of next year.

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