Deutsche Bank recommends buying Polish zloty which is expected to strengthen to EUR/PLN 4.30 (now, February 8, EUR/PLN 4.41). The currency is mainly supported by strong economic growth.
Monetary Policy Council holds rates intact as expected. The National Bank of Poland (NBP) kept the reference rate at 1.50%, the deposit rate at 0.50% and the Lombard rate at 2.50%.
The Polish government adopted a bill implementing the PLN 500+ child subsidy program for every second and consecutive children regardless of household income as well as for the first child in lower-earning households (PLN 800 per capita monthly income), the bill after social consultations showed. The government wants the draft to come into effect on April 1. According to the impact assessment the cost of the bill will reach PLN 17.05 billion in 2016 and PLN 22.567 billion annually in subsequent years.
Family, Labour and Social Policy Minister, Elżbieta Rafalska told, that new rules lowering the age at which people retire in Poland could come into force in January 2017, while the realistic bill will be adopted this year. The retirement age is about to return to 65 for men and 60 for women, down from 67 for both sexes.
As showed the winter set of economic forecasts from the European Commission, the Polish economy is expected to grow by 3.5% both this year and the next, while general government deficit is expected to decrease to 2.8 of GDP in 2016, but grow to 3.4% in 2017.
The fiscal outlook for 2017 “very much depends on the final outcome of recent government proposals,” especially the plans to hike the standardized deduction in PIT and reduce the retirement age. None of the proposals are adopted in the baseline scenario, the European Commission said.
The GDP growth forecasts for 2015-2017 remained unchanged compared to the November projection. GDP is expected to be driven by private consumption, with moderate growth of private investments and public investments accelerating in 2017.
warsawvoice.pl
thenews.pl
bloomberg.com
