More and more speak for percent rates above 4%
01:42
There are more and more arguments that interest rates in 2022 will exceed 4%, which in line with our expectations should support the appreciation of the zloty, believe Ebury analysts.
The Federal Reserve has made it clear that US inflation is the biggest problem it is currently facing, and reducing it is a priority. Such a radical turn pushed the USD / PLN rate above the level of 4.10.
The former correlations in the market are valid again – in recent days the dollar has gained against other G10 currencies and most emerging market currencies. Equity markets plunged, credit spreads widened and bond yields rose.
The starting week will be full of information and data important for the currency market. Central banks remain in the spotlight. On Thursday, decisions on interest rates will be made by the European Central Bank, the Bank of England, and the Czech National Bank. The latter two are expected to raise interest rates again, by 25 (to 0.5%) and 75 bp respectively. (up to 4.5%).
