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NBP extends pause, policy to stay loose for some time

The Polish central bank’s latest forecasts, published this afternoon, tell a story in which the economic recovery will strengthen over the coming years and inflationary pressures will pick up strongly. But we think that policymakers will tolerate higher inflation and maintain our view for interest rates to remain at 0.10% until 2023, which is a much more dovish view than most analysts and investors.

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