The Polish MPC decided to leave interest rates unchanged at 3.25%, in line with consensus and our forecast. The pause in the easing cycle was clearly suggested last month: after the MPC in a surprise move slashed rates by 50bps, governor Marek Belka underlined a switch to a wait-and-see mode, meaning the need for further observation of the incoming macro data. Key later today will be the release of the official post-meeting statement and the conference with governor Belka scheduled at 4:00 p.m. CET. During the last meeting, governor Belka said the MPC might consider further rate cuts if GDP and inflation figures differed from the March projection. The projection envisages 2013 GDP growth at 1.3% and average CPI at 1.6%, which remains fairly close to our current baseline scenario of 1.2% GDP growth and 1.4% inflation. Most importantly, the gradual rebound of GDP growth we expect to see from 2Q13, should take some pressure off the MPC to further ease policy. That said, we continue to expect rates will be kept at current record-low level until end-year. However, with recent leading indicators signalling German economy losing steam and ECB’s governor Mario Draghi hinting at possible rate cut ahead, the odds for another 25bp interest rate cut by the MPC within the next 2-3 months have recently increased.