EMEA Snap:Poland (NBP),No change

Poland’s Monetary Policy Council (MPC) left rates on hold at 1.5% at theDecember 07th policy meeting, in line with unanimous market expectations.

    The Council remains wary of ongoing slight softening in economic activity yetalso appears convinced about an acceleration in growth next year as well as agradual rise in inflation. The bits pertaining to the neutral policy outlook were stilluntouched.

    The Council’s assessment saw only minor changes. On the global backdrop, ratesettersacknowledge the recent global steepening as well as the forthcomingrate normalization cycle by Fed. Policy-makers however seem marginally moreconcerned about recent deceleration in Euro-area economic growth, includingGermany. The statement this time says real GDP growth is likely to stay subduedin Q4 while underperformance during previous quarter is now also tied to exportweakness, reflecting slower growth in Europe, on top of an ongoing malaise ininvestments. On inflation outlook, the Council retains expectations for a gradualrise ahead, i.e. to 1.5% by end-2017.