The political standoff in Poland is set to raise fresh doubts about the future of central bank Governor Adam Glapinski when policymakers meet to set interest rates on Wednesday.

Lawmakers are expected to vote later this month on whether to put the governor on trial for alleged political meddling before the 2023 election, which could lead to his suspension from office. Glapinski has denied any wrongdoing as he disputes the parliament’s right to suspend him, citing a top court decision contested by the ruling coalition.

The vote would open a new chapter in the feud that sent the zloty to a three-year low against the euro this week. Prime Minister Donald Tusk deployed riot police to the Constitutional Tribunal on Friday following a suspension of its chief justice and his deputy, seeking to reverse a power grab by the previous nationalist administration.

Poland’s veteran leader is taking a big gamble, even as the European Union’s executive arm has for now sided with the government in the conflict, which has pitted Tusk against his political rivals including President Karol Nawrocki.

The government is running one of the EU’s widest budget deficits while the long-running feud with the president has all but gutted its legislative agenda and contributed to Poland’s first credit rating downgrade in a decade.

“Political conflict is spreading across key institutions just as the fiscal and rating backdrop is deteriorating,” said Tatha Ghose, a senior economist at Commerzbank AG. “The risk of a sharper zloty move may be mounting.”Tusk struck a conciliatory tone after meeting Nawrocki late on Tuesday, telling reporters he’s ready to talk to the president one-on-one this week in an effort to resolve the crisis at the top court.

The government also took a step back on Tuesday when Tusk signed off on the appointments to the central bank’s management board, effectively ending a separate dispute that threatened to cripple the institution’s ability to respond in an emergency.

But the government’s spokesman made it clear that the decision was unrelated to the parliament’s decision about Glapinski. It’s not clear whether the four-way ruling coalition would jointly support the motion to put the governor on trial.

Finance Minister Andrzej Domanski convinced Tusk to sign off on the appointments to the central bank board, according to a person familiar with the matter. He argued that while the governor should be held accountable, Poland didn’t need another conflict that would hit the economy, the person said. The Finance Ministry didn’t respond to a request for comment.

On Wednesday, the 10-member Monetary Policy Council, which operates separately from the board and is also chaired by Glapinski, will keep its benchmark interest rate unchanged at 3.75% for an eighth straight month, according to 29 out of 33 economists surveyed by Bloomberg. The other four forecast a quarter-point hike. The central bank will also publish its latest economic growth and inflation projections.

Glapinski, an ally of the former ruling nationalists, could be suspended if parliament decides that he should appear before a special tribunal for alleged misconduct. His dispute with Tusk dates back to at least 2023 when, just weeks before a parliamentary election, the central bank unexpectedly cut rates despite double-digit inflation.

The reduction was widely seen as a last-ditch effort by the Glapinski-led MPC to try to help the then government secure reelection by downplaying inflationary pressures. The zloty tanked at the time.

Tusk accused Glapinski of politicizing the central bank and vowed to remove the governor if he was elected prime minister. He didn’t follow through after winning the 2023 vote, but with the next general election due next fall and the far right rising in opinion polls, Tusk appears to be redoubling his efforts.

Following a two-year inquiry, a parliamentary committee in October endorsed all eight accusations leveled against Glapinski. These include allegations that the pre-election rate cut breached the central bank’s political neutrality, that the monetary authority indirectly financed the budget deficit through bond purchases during the Covid-19 pandemic, and that it intervened in the zloty market without proper authorization.

Glapinski has dismissed the probe as baseless and warned it could have negative consequences for the country.

“I want to assure you that the National Bank of Poland won’t succumb to any political pressure,” he said at a news conference last month. Glapinski will brief reporters on Thursday.