Zloty Drops as Central Bank Cuts Rates More than Expected
The Polish zloty dropped today as the Polish central bank cut interest rate more than was expected, reducing attractiveness of the currency. Yet not all specialists were bearish on the zloty.
Economic activity may gradually improve in the coming quarters. However, GDP growth will probably remain moderate, which will continue to contain inflationary pressure.
That was the fifth straight interest rate cut, but the first by more than 25 basis points. Some analysts believed that the NBP has no more room for reduction of borrowing costs and expressed opinion that traders should be bullish on the zloty.
USD/PLN jumped from 3.1590 to 3.1970 as of 22:18 GMT today.
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Earlier News About the Polish Zloty:
- Polish Zloty Drops on Concerns About Slowing Inflation (2013-02-12)
- Zloty Remains Strong Even as Poland's Central Bank Cuts Rates (2012-12-05)
- Zloty Gains as Investors Show Interest in Polish Assets (2012-09-11)
- Zloty Drops as Samaras Talks to Merkel (2012-08-24)
- Zloty Rises with Poland's Retail Sales (2012-03-26)