PKO BP economist Kamil Pastor anticipates the Monetary Policy Council (RPP) will maintain current interest rates at its meeting this week, citing Middle East tensions.
Interest Rate Decision Expected This Week
The Monetary Policy Council (RPP) will begin a two-day meeting this Wednesday, with expectations that interest rates will remain unchanged, according to Kamil Pastor, an economist at PKO BP.
Factors Influencing the Decision
Pastor stated the primary reason for this anticipated decision is the ongoing conflict in the Middle East and the resulting increase in oil prices, which prevents the RPP from further reducing interest rates.
No rate cuts are expected in the near future unless the situation in the Middle East stabilizes, he added.
March Rate Cut
The RPP lowered interest rates in March by 25 basis points, bringing the main NBP reference rate to 3.75 percent.
Outlook for the Remainder of the Year
According to Pastor, the most likely scenario is that there will be no further interest rate cuts this year. However, he believes market expectations of potential rate hikes by the RPP are excessive.
