NBP: Stand-Off Over 'Polish SAFE' Killed Deal On NBP Board Appointments: WP

Wirtualna Polska reports: https://wiadomosci.wp.pl/byl-deal-i-nie-ma-dealu-jak-sprawa-safe-0-proc-wysadzi la-w-powietrze-porozumienie-na-linii-rzad-prezydent-prezes-nbp-7263456607029536 a that the stand-off over financing defence spending has killed a tentative deal between the government, the President and NBP Governor Glapiski on filling the vacant, and soon-to-be vacant, seats on the central bank's Management Board. * The deal envisaged allowing the PM, the President, the Governor and a junior ruling coalition party PSL to nominate one candidate each, but the agreement fell apart after President Nawrocki and Governor Glapiski unveiled their proposed 'Polish SAFE 0%', a domestic alternative to the EU's loans-for-weapons programme. * This increases the risk of a deadlock in the process of filling the seats on the NBP's Management Board. In the absence of any action, the number of its members will fall below six, the legally required threshold, in November. This unprecedented development would raise questions about the Board's capacity to perform its functions. * Note that the NBP's Management Board and the Monetary Policy Council are two entirely separate bodies. The MPC is responsible for setting monetary policy, while the Management Board oversees the implementation of these decisions and supervises the central bank's day-to-day operations. * According to Wirtualna Polska, PM Tusk was planning to nominate MPC's Ludwik Kotecki (with other names on the table as well), President Nawrocki was considering MPC's Marcin Zarzecki, the Governor lobbied for the re-appointment of his deputy Marta Kightley, and the Polish People's Party (PSL) wanted to nominate MPC's Przemysaw Litwiniuk. * This would have automatically entrailed a reshuffle of the MPC. The Senate, now controlled by the governing coalition, would gain the opportunity to appoint the replacements of Kotecki and Litwiniuk before the 2027 election. Both new MPC members would be appointed to terms lasting until 2032, beyond the expiry of the next parliamentary term (2027-2031).

TURKEY: CBRT Closely Monitoring Effects of Geopolitics on the Inflation Outlook

Highlights from the policy statement: * As uncertainty heightened amid geopolitical developments, global risk appetite deteriorated and energy prices increased. To contain the risks posed by these factors to the inflation outlook, decisions supporting tight monetary policy have been enacted alongside coordinated fiscal measures. * The effects of geopolitical developments on the inflation outlook through the cost channel and economic activity are being closely monitored. * The underlying trend of inflation was essentially flat in February. * Monetary policy decisions are made prudently on a meeting-by-meeting basis with a focus on the inflation outlook. * In case of a significant and persistent deterioration in the inflation outlook, which can also be driven by the recent developments, monetary policy stance will be tightened. * In case of unanticipated developments in credit and deposit markets, monetary transmission mechanism will be supported via additional macroprudential measures. Liquidity conditions will continue to be closely monitored and liquidity management tools will continue to be used effectively. Click here: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Announcements/Pres s+Releases/2026/ANO2026-12 to see the full release.

TURKEY: CBRT Leave One-Week Repo Rate Unchanged at 37%

* "TURKEY LEAVES ONE-WEEK REPO RATE AT 37%; EST. 37.00%" - BBG * "TURKEY CENTRAL BANK O/N LENDING RATE 40%, PREVIOUS 40%" * "TURKEY CENTRAL BANK O/N BORROWING RATE 35.5%, PREVIOUS 35.5%"

TURKEY: CBRT Decision Coming Up, No Change to Repo Rate Expected

* The CBRT is widely expected to leave the one-week repo rate unchanged at 37%, reflecting heightened uncertainty stemming from the conflict in the Middle East and Turkey's sensitivity to rising energy prices. * The Bank's recent backdoor tightening measures make a formal rate hike improbable as well, with policymakers likely to adopt a cautious tone amid ongoing geopolitical risks. * Indeed, almost all analysts surveyed by Bloomberg anticipate no change to the repo rate this month. * The decision will be announced at 11:00GMT/14:00 local time. Download our full preview, with a summary of sell-side analyst views, here: https://mni.marketnews.com/4b1MMO1.