Polish Monetary Policy Outlook: Danske Bank

Danske Bank notes as follows on Thursday....

• The Polish central bank (NBP) continues to undershoot its 2.5% inflation target significantly and we are likely to see continued deflation in coming months. 
  
  
• At its latest monetary policy council meeting, the NBP cut the key policy rate by 50bp in a surprise move but also stated that this would be the last cut in this easing cycle.
  
  
• However, we doubt this will be the last cut - and so does the market.