Signalling More Rate Hikes

August 2004 | Market Strategy

The National Bank of Poland (NBP) has released its inflation forecasts for the period between 2004 and 2006. Based on mid-July's fourteen-day intervention rate of 5.75% (as opposed to 6.50% at present), the bank's figures foresee CPI reaching a high of approximately 6.0% in Q105 before moderating to around 3.5% in early 2006. Deputy Governor Krzysztof Rybinski has immediately keen to emphasise that such a scenario will most probably be avoided because of the 75bps of interest rate rises which have been implemented since the forecasts were devised. However, the current tightening cycle does not seem to be over yet,

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