Poland: NBP cuts key policy rate by 25bp |
Autor: Bancherul.ro
2008-11-27 10:16 |
|
The Polish central bank (NBP) monetary policy council (RPP) decided at its meeting today to cut the key policy rate by 25 basis points to 5.75%, said Danske Bank.
Our and the consensus expectation was for an unchanged rate.
Nevertheless, today decision to cut the key policy rate can only be seen as a minor surprise.
The main reasons behind the NBP rate cut today are the expected slowdown in growth on the back of the global credit crisis and that inflation will begin to ease significantly in the coming months and close in on the NBP inflation target.
In this light it was all about timing for the NBP. It has now begun an easing of monetary policies and the NBP could present an additional rate cut in the coming months, maybe as soon as its next meeting at the end of December. However, the main risk to this view is a weakening of the Polish zloty, which could cause NBP to
stay cautious.
|
|
