Stable low wage momentum as strong argument for MPC rate cut in May (opinion)
Poland's March wage data, which showed their stable low growth rate, make a strong case for a rate cut in May, which the Monetary Policy Council is lining up for, economists estimate.
"Slowing wage growth, core inflation lower than Poland's central bank NBP's expectations, a weaker USD and relatively low oil prices are all arguments for Poland's central bank NBP cut rates in May," ING Economics wrote on X.
"(...) The stable low wage momentum makes a strong case for a rate cut in May, which we believe the MPC is preparing to do," Pekao's analysis team wrote on X.
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Poland's average gross wages in the business sector rose by 7.7 percent year on year and grew by 5.1 percent month on month to PLN 9,055.92 (EUR 2,114.34). The average employment fell by 0.9 percent year on year and by 0.1 in monthly terms.
The economists polled by PAP Biznes had expected the average salary to rise by 7.7 percent year on year and to increase by 5.3 percent month on month.
The employment had been expected to decrease by 0.9 percent year on year and 0.1 percent month on month.
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