Polish Zloty: Scope for weakness against Euro as NBP underwhelms – ING
ING’s Frantisek Taborsky reports that the National Bank of Poland left rates at 3.75% and provided limited new guidance, shifting focus to Governor Glapinski’s press conference. With markets already pricing around 85bp of tightening, ING sees a high bar for a hawkish surprise.
Polish Zloty may face weakness against the Euro as the National Bank of Poland (NBP) underperformed, according to ING's Frantisek Taborsky. The central bank maintained its key rate at 3.75% and provided minimal new guidance, with focus on Governor Adam Glapinski's upcoming press conference. The market already accounted for approximately 85 basis points of rate tightening, making it difficult for the NBP to surprise on the hawkish side.
ING anticipates some easing in rate expectations and a rise in EUR/PLN, potentially reaching above 4.320. Record gas prices could further support the currency pair. Governor Glapinski is expected to deliver a more hawkish tone today at 3pm local time, but with markets pricing in nearly 85 basis points of tightening, a significant hawkish surprise is unlikely. ECB is also set to raise rates by 25 basis points on Thursday.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
