Ebury: MPC will raise interest rates tomorrow by 50, but possibly by 75 or 100 bp

During Tuesday's meeting, the Monetary Policy Council (MPC) will raise interest rates by 50 bp to 3.25% in the case of the main reference rate, although there may be a stronger hike, e.g. by 75 or 100 bp, believe Ebury analysts: Enrique Diaz-Alvarez, Matthew Ryan, Roman Ziruk, Itsaso Apezteguia. They expect that the central bank will strongly emphasize that the stabilization of the exchange rate is important for it.

In analysts' opinion, the strong depreciation of the zloty in tandem with the USD is particularly unfavorable, as this currency is of great importance in global trade (prices of most commodities are generally quoted in dollars).

"The depreciation is a consequence of several factors, including the proximity of the conflict, economic relations (especially in terms of the import of energy resources from Russia), the fact that the zloty is the currency of emerging markets, which means that it reacts negatively to changes in the assessment of market risk," the release reads.

(ISBnews)