Central Bank Monitor – Upcoming changes in NBP board

Citi assesses the possible implications of the new appointments to the NBP board, viewing the decision as supportive for market sentiment since it is likely to reduce investor concerns relating to the functioning of the central bank, though it does not change much the expected trajectory of interest rates in Poland. Polish Prime Minister Donald Tusk has countersigned the President's motion to appoint four members to the central bank's management board, resolving a period of uncertainty and addressing investor concerns around the ability of the NBP board to operate effectively after November 4. The four appointees include three incumbent Monetary Policy Council members — Ludwik Kotecki, Przemysław Litwiniuk and Marcin Zarzecki — as well as Marta Kightley, who has already served one term as First Deputy Governor. With three members moving from the rate-setting body to the management board, one replacement will be appointed by the President of Poland and two by the Senate, with vacant sea