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19 Mar 2015
Polish zloty poised for further appreciation – Danske Bank
FXStreet (Edinburgh) - Chief Analyst Lars Christensen at Danske Bank sees the likeliness of PLN to pick up pace in the near term.
Key Quotes
“We are becoming slightly more optimistic on the outlook for the Polish economy – mostly on the back of an improved outlook for the eurozone. So while we expect lower GDP growth in 2015 than in 2014, we nonetheless expect growth to pick up during the year and into 2016”.
“Polish inflation continues to significantly undershoot the central bank’s (NBP) 2.% target and we are likely to see continued deflation in the coming months. At its latest monetary policy council meeting, the NBP cut the key policy rate by 50bp in a surprise move, but also stated that this would be the last cut in this easing cycle”.
“The zloty has rebounded from the relatively weak levels at the beginning of the year and we are looking for further appreciation in the near term.
“The currency is supported by both a moderately more positive outlook for growth and the ECB’s QE programme. With yields and rates coming down across Europe, the zloty looks increasingly attractive from a carry perspective”.
Key Quotes
“We are becoming slightly more optimistic on the outlook for the Polish economy – mostly on the back of an improved outlook for the eurozone. So while we expect lower GDP growth in 2015 than in 2014, we nonetheless expect growth to pick up during the year and into 2016”.
“Polish inflation continues to significantly undershoot the central bank’s (NBP) 2.% target and we are likely to see continued deflation in the coming months. At its latest monetary policy council meeting, the NBP cut the key policy rate by 50bp in a surprise move, but also stated that this would be the last cut in this easing cycle”.
“The zloty has rebounded from the relatively weak levels at the beginning of the year and we are looking for further appreciation in the near term.
“The currency is supported by both a moderately more positive outlook for growth and the ECB’s QE programme. With yields and rates coming down across Europe, the zloty looks increasingly attractive from a carry perspective”.