Poland: Keeping the rate unchanged will support the Zloty – Commerzbank

The Polish Zloty rallied noticeably after the Polish Central Bank (NBP) surprisingly kept interest rates unchanged. Economists at Commerzbank analyze PLN outlook.

NBP surprises

NBP surprised markets by not cutting its base rate. If NBP had to change course for whatever reason, this would support the currency.

Fundamentally speaking, NBP’s new economic projections feature stronger, but sub-trend, GDP growth during 2024 as well as softer inflation – these revisions could have theoretically supported some more rate cuts. 

Keeping the rate unchanged will support the Zloty.