Zloty low against euro, interest rates to go down next week?

The zloty weakened on Thursday, driven down by talk that the Finance M inistry may be intervening in the currency market, as well as concerns over a war with Iraq. The zloty fell to 4.2112 to the euro, a 32-month low, and dealers said it drop even further. According to a Reuters poll on Thursday, the National Bank will reduce its main interest rate, now at 6.5%, by 25 basis points at its monthly policy meeting ending on February 26. "January inflation was benign and there is a large probability that it will remain low. Despite good industrial output, the pace of economic growth is still slow." said Iwona Bartosiewicz, analyst at Citigroup's Bank Handlowy. (Reuters) M.M.