Investing.com - Financial Markets Worldwide

Polish Central Bank Initiates Easing Cycle

ByDanske Markets
Published 11/11/2012, 01:10 AM
Updated 05/14/2017, 06:45 AM
Polish central bank initiates easing cycle

This week the Polish central bank (NBP) finally initiated a monetary easing cycle after the Monetary Policy Council decided to cut its key policy rate by 25bp to 4.50%. The decision was hardly a surprise and significant interest rate cuts - more than 100bp over the coming year - are already priced in.

It is nonetheless encouraging that the NBP has finally started to cut interest rates - it is certainly needed as Polish growth has been slowing down relatively sharply recently on the back of both weaker domestic demand and slowing export growth. Looking ahead, it is highly likely that the NBP will deliver yet another 25bp at the next Monetary Policy Council meeting in December.

Expect more pronounced slowdown in Q3
Next week will be quite eventful in terms of economic releases. The focus will undoubtedly be on the Q3 GDP releases due for publishing in a number of countries across the EMEA region next week, for instance in Hungary and the Czech Republic. Both countries have been hit quite hard by the economic slowdown this year and our forecast points to even deeper economic contraction in the third quarter.

Especially the Czech economy should slow down quite sharply in Q3. We expect Czech Q3 GDP to fall as much as 1.8% y/y (down from 1.0% y/y in Q2), while Hungarian GDP growth should contract 1.5% y/y in Q3, down from -1.3% y/y in Q2. Both forecasts are below consensus.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.