Polish central bank Governor Marek Belka moved to cool market expectations of an interest-rate cut while keeping his options open in case economic growth slows.
Polish retail sales increased faster than economists expected in March, fueling speculation the central bank will raise interest rates again to control inflation.
Polish inflation probably peaked in May and will slow in the coming months as the effects of three interest rate increases by the central bank curb price growth.
Poland’s annual inflation rate rose in line with economists’ forecasts in October, prompting traders to cut their bets on an interest-rate increase this month.
Polish industrial output accelerated for a second month in December as a recovery in Germany broadened and Polish wages rose, increasing the chances of higher borrowing costs in central Europe’s biggest economy.
Polish industrial-output fell for a third month in four, boosting the case for an interest-rate cut at the central bank’s July meeting.
Polish inflation probably accelerated to the fastest since September 2008 last month as concern that price-growth is spreading beyond food and fuel prompts the central bank to raise interest rates.
Polish economic growth accelerated from a four-year low in the second quarter, buttressing central bank forecasts that the second half of the year will bring an export-led recovery.
The zloty gained to the strongest level in more than a week, erasing earlier losses, after U.S. payrolls topped analyst estimates, boosting investors’ appetite for riskier assets.
"There're plenty of question marks hanging over this meeting."
- Piotr Bielski on Jun 30, 2014