NBP says fiscal policy and regulations regarding fuel prices remain a risk for CPI; further decisions depend on data

The NBP's commentary underscores a cautious stance on monetary policy, noting that fiscal policies and fuel price regulations could pose risks to inflation expectations.

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  • The outlook for global activity and inflation is subject to significant uncertainty, related, in particular, to geopolitical situation.
  • NBP may intervene in the foreign exchange market.
  • In the near future, do not see change in rates. 
Context

With uncertainty surrounding global economic activity and geopolitical tensions, any future adjustments will be data-dependent, indicating a potential for intervention in the FX market but no immediate rate changes anticipated. This suggests a watchful approach to inflationary pressures and currency stability, which could influence cross-asset dynamics.

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