Poland: No hurry to raise interest rates – ABN Amro

Economists at ABN Amro analyze the outlook for the Polish economy in 2020, which is expected to grow at a slower pace. EUR/PLN is dealt at 4.2426 as has moved around this level through the year 2020.

Key quotes

"Poland  saw robust growth of 4.2% in 2019."

"We expect Polish real GDP growth in 2020 to stand at around 3.5%, from 4.2% in 2019." 

"Poland has no significant fiscal policy space to counter a deeper than expected downturn."

"In Poland,  CPI YoY change is expected to stand at approx. 2.5% end-20 (against 2.2% end-19). In CEE3, just like in the eurozone, real short term interest rates are negative. This is particularly the case in Poland."

"The Polish MPC has been downplaying inflation risks and signalling it is no hurry to raise interest rates."