Polish Zloty Firm as NBP Does Not Mention Interest Rate Cut

The Polish zloty was firm against the US dollar today after the nation’s central bank left interest rates unchanged yesterday. Policy makers did not mention possibility of an interest rate cut and this was positive for the currency.

The Narodowy Bank Polski left its main interest rate at 2.5 percent. The central bank said in the statement about the Polish economy:

In the opinion of the Council, gradual economic recovery is likely to continue in the coming quarters, however, inflationary pressure will remain subdued.

Regarding the outlook for the monetary policy, the NBP stated:

Given low inflation pressure and a moderate scale of the expected recovery, in the Council’s assessment interest rates should be kept unchanged at least until the end of 2013, which will support return of inflation to the target in the medium term.

USD/PLN was down from 3.1036 to 3.0949 as of 2:13 GMT today.

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