2024-03-26 08:45:23 ET
Summary
- Wage growth in Poland means inflation will be higher for longer, meaning rates will be higher for longer. But inflation has still come down nicely so far.
- This is good for the PLN, and it's good for financials for now, before cost of deposits rises.
- Expense ratios are a little high, but PEs are very solid at 7.6x, and another year of income growth seems all but guaranteed.
- Polish duration gaps are going to be more favourable as well for when Polish rates start declining, probably after the rest of the developed world.
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For further details see:
EPOL: A Matter Of The PLN