FX.co ★ Poland Holds Rate as Expected

In February, the National Bank of Poland opted to maintain its primary interest rate at 4%, marking a continuation of its pause in adjustment for a second consecutive month. This decision aligns with market predictions, although there was some division among analysts, with a portion anticipating a 25 basis point reduction. Policymakers highlighted the absence of new inflation data and minimal additional information since their last meeting as reasons for holding steady. A fresh inflation projection is anticipated in March, which will facilitate a better evaluation of the sustainability of the recent disinflation trends. In December, inflation decelerated to 2.4%, aligning closely with the central bank's target range of 1.5% to 3.5%. The final inflation figures for January and February are also scheduled for release in March, following adjustments to the statistical basket.