The Central European currencies enjoyed a calm session on Wednesday. The biggest volatility was seen on the Polish FX market where zloty depreciated by 0.4% early in the morning. However, during the day, it gained back most of its losses and ended the session only 0.15% weaker at around EUR/PLN 4.124. Zloty´s higher volatility was supported by a fresh inflation release by the National bank of Poland. Core inflation slowed to 1.4% Y/Y in December (after 1.7% Y/Y in November), i.e. more than markets had expected. MPC member Anna Zielinska – Glebocka said on Tuesday that core CPI was the most important indicator to be considered by the monetary policy council. The market started to believe that the NBP could cut rates more than it has priced in so far and an additional 25 bps could be in the pipeline. Important data on manufacturing and wages to be released tomorrow can - if positive - reverse the market sentiment again, though. The Czech koruna hovered in a narrow range between EUR/CZK 25.52 – 25.62. CNB governor Singer said that the bank would not set any precise target for EUR/CZK in the case of FX interventions and would discuss the FX development and possible interventions on each CNB meeting.