Currency report: Investors wait for RPP

A recent article in Rzeczpospolita regarding possible problems with Poland's budget deficit caused the currency to bounce back to levels above zł.3.80 against the euro.

Investors are waiting anxiously for an interest-rate decision this week. The figures last week showed good retail sales, up by 8.6 percent in January, and very bad unemployment figures, which rose to 18 percent. The złoty closed the week at zł.3.78 against the euro.

The debt market was calm. The five-year T-bond yield is currently 4.5 percent, slightly up from last week. An interest-rate cut and an outlook for further cuts this year could bring very good profits for the debt market. Political and budgetary factors are still apparent and could weigh down the impact of a change in the interest rate.

Krzysztof Kowalczyk

WGI Dom Maklerski