The benefits of a (possibly) stable political scene

The most important influence was the reformation of the coalition and the cabinet. Stabilization in politics could help to strengthen the złoty and stocks. Marek Kaczor of PKO BP said that there are three reasons why the prices of stocks should increase. First of all, because foreign companies willingly invest in Poland and secondly because the Polish złoty is very strong. The third reason is a large amount of money in investment and pension funds available for use. Next week, the Monetary Policy Council (RPP) will meet and most economists are convinced that the RPP will not change interest rates now, but rather in February or March. Good macroeconomic data and stable political situation could also favorably influence evaluation of the złoty. Arkadiusz Krześniak, head economist at Deutche Bank, said that there is no threat to the złoty from the RPP and that it will assure investors that the interest rate will be increased in Q1 or Q2 of next year, which is good news for the złoty. (Rzeczpospolita, October 21-22, p.B5)