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At its scheduled rate-announcement meeting, the NBP decided to halve its Base Rate by cutting it to 0.50%, Cristian Maggio from TD Securities reports. EUR/PLN is trading at 4.5421.

Key quotes

“The NBP has surprised the consensus by cutting rates by 50bps to 0.5% today. We had expected a hold.”

“We consider today’s cut as being pre-emptive of the worsening economic conditions and related tightening of Polish financial conditions that are yet to come.”

“EUR/PLN has inched modestly higher despite the market being positioned for easing today (we estimated that -35bps were in the prices yesterday).”