4:21 9 May 2025
Zloty rises on hawkish tone
The zloty strengthened against the euro and dollar after NBP President Adam Glapiński signaled that further interest rate cuts are unlikely in June, describing autumn as a more likely window. Bond yields also rose. Glapiński said inflation appears past its peak but remains high, driven by core inflation and loose fiscal policy. He emphasized that recent rate adjustments do not mark the start of a full easing cycle.
Economists now expect the next 25 bps cut in July, with further reductions possible in autumn. Market expectations for deeper, faster cuts were described as unrealistic by analysts at Pekao and ING.
The MPC cut the reference rate by 50 bps to 5.25% on May 6–7, in line with forecasts.
Elsewhere, the BoE cut rates to 4.25%, while central banks in Sweden and Norway held steady. U.S. jobless claims reached 228,000, slightly below expectations.
Source: biznes.pap.pl
