As broadly expected, the Polish central bank’s (NBP) Monetary Policy Council (RPP) last week decided in favour of unchanged interest rates, keeping the key policy rate at 4.00%.

The decision to keep rates on hold should clearly be seem in the light of the fact that inflation remains very low - below 1%. That said, the timing of the next rate hike has clearly been brought forward, mainly due to the following circumstances:
Read the rest of this entry »