Drop in zloty attributed to Balcerowicz comment

The value of the zloty dropped significantly during Wednesday's trading session. During the day, the zloty-to-American dollar ratio increased to 4.14 from 4.095 at the start of trade, while the euro price increased to 3.649 from 3.599. The depreciation of the Polish currency has been attributed by some to a statement by Central Bank governor and Monetary Policy Council (RPP) Chairman Leszek Balcerowicz, who commented that the recent slight drop in inflation in December compared to November could be temporary. Market investors understood these words to possibly mean no reduction of interest rates by the RPP in January. Analysts predict further changes in the rating of the zloty, related to investors' uncertainty about the possibility of a reduction in interest rates this month. (Puls Biznesu, p. 19) M.T.