National Bank of Poland to release interest rate decision
The National Bank of Poland will release an interest rate decision today.
Poland’s central bank is expected to maintain its benchmark rate at a record low 0.1% as the country continues to suffer from a pandemic-induced recession. The rate has been cut three times since the viral outbreak in early 2020, summing to a total reduction of 140 basis points in the cost of borrowing.
Weeks of bitter campaigning for the Polish presidency have been marked by a stark debate over the country’s European identity and the fragile state of its economy, which is expected to suffer a 7.5% contraction by the end of 2020. The financial strain of the pandemic has produced competing economic outlooks within the electorate, pitting the economic populism of the ruling Law and Justice (PiS) against the Brussels-centric liberalism of the moderate opposition.
Andrzej Duda’s re-election as Poland’s president clears the way for the PiS to push ahead with its nationalistic vision for the country. While the pro-Brussels opposition within Poland nearly ousted Duda in a close race, the defeat will serve to question the legitimacy of the view that the country must economically integrate with Europe. Therefore, anticipate divisions to continue to fester in the country, especially as the longer-term impacts of the struggling economy begin to be felt.
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