Depreciation of the EURPLN by 3.5% since mid-April has caused a loosening of monetary conditions in Poland. While inflation at -1.1% y/y is still far below the 1.5-3.5% target, it has increased in the last two months. Growth remained elevated at 3.5% in Q1 15. “Based on these positive trends, we have increased our forecast to 3.4% (from 3.1% previously) in 2015 and 3.5% (from 3.2%) in 2016. The NBP will likely keep its 1.5% policy rate on hold, in our view.” According to Barclays
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