Polish currency wins after central bank chief changes tack – The First News
The zloty strengthened against the euro on Thursday, climbing to 4.60 PLN, its highest value in three weeks.
The slight change in fortunes for the Polish currency is the result, according to economists, of a change of language by Adam Glapinski, the governor of the central bank of Poland (NBP).
“I’m changing the rhetoric,” he said. “Inflation is not temporary, inflation is heavy,” Glapinski said Wednesday.
He promised that bringing it down to the “minimum level” was a goal, but not at the cost of high unemployment. “We are going to face inflation,” added Glapinski. According to the current forecasts of the NBP, after the first quarter of 2022, the inflation rate will decrease. “It won’t be as sharp, although it will be around 5%,” Glapinski estimated.
The banker previously said Poland’s high inflation rate was temporary.
Another factor in favor of the zloty was a report published on Wednesday by the Financial Times that the stalemate over releasing EU stimulus funds for Poland may soon end.
Millennium Bank economists on Thursday said that “the zloty has strengthened considerably, in part thanks to yesterday’s Financial Times article on a possible breakthrough in negotiations between Poland and the European Union over the ‘approval of the National Recovery Plan (KPO) and the statement by the Governor of the Central Bank of Poland (NBP). “
The NBP set its fixed EUR / PLN exchange rate at 4.60 on Thursday.
The inflation rate in Poland reached 7.7% in November.