The positive sentiment remains

The positive sentiment on the domestic market persists, and foreign investors are clearly interested in the zloty causing its prolonged appreciation. The real value of the zloty has risen to levels not seen since the beginning of the year, with the EUR/PLN rate going down to below 4.6000 and the USD/PLN rate reaching a weekly minimum of 3.7200. The zloty appreciated at the beginning of the week, being insensitive to upcoming political settlement. At the beginning of next week the preliminary results for the European Parliament elections will be released. It seems unlikely that the populist parties will gain much support, which would be a positive prognostic for the general election. Therefore, the results from the weekend's ballot should have a positive impact on the zloty. In our opinion, though, the zloty will depreciate a little. In coming days, important macroeconomic figures from Poland will be released, with CPI and the current account deficit being of most interest. It is expected that CPI will be 2.9%. In our opinion, such an increase in prices, even if mainly caused by oil price rises, will make the Monetary Policy Council raise interest rates by 25 basis points in June, stressing its commitment to fight inflation. www.tms.pl .