How the new Poland's MPC will approach monetary policy?

Poland's new MPC is gradually being sworn in. Yesterday, Lower House nominees Grazyna Ancyparowicz and Eryk Lon were sworn in, President Andrzej Duda will nominate his two positions by 19 February.

Remarks by most new members suggest that they view present conditions as accommodative enough; they are signaling a lack of urgency to combat deflation. One of the members emphasized that deflation is not such a big problem and that there is no case for using either the official interest rate or unconventional policy tools any further.

Such remarks could well be an attempt by members to dispel concerns that a PiS-nominated MPC would be unreasonably dovish. Even if this were their fundamental assessment, there is every possibility that their view could change once the ECB and the NBP have lowered inflation projections by March.