15:20 2 April 2024
PKO BP economists: interest rates may remain unchanged for most of the year
The Monetary Policy Council (RPP) is expected to keep interest rates unchanged at this week's meeting, according to analysts from PKO Bank Polski. They predict a potential 25 basis point rate cut in November but suggest it may not signify the beginning of a monetary easing cycle. RPP's attention is centered around core inflation and the recent local minimum in consumer inflation at 1.9% year-on-year in March, which hasn't altered its hawkish stance.
Despite a slight decline in core inflation to 4.7% year-on-year in March from 5.4% in February, primarily due to statistical factors, analysts believe that the current acceleration in core inflation remains relatively high and inconsistent with achieving the inflation target. RPP has maintained its interest rates unchanged (with the main reference rate at 5.75%) since lowering them by 25 basis points in October 2023.
