Polish Zloty Slips After Inflation Data

The Polish zloty slipped against the US dollar today as analysts speculated that the central bank will not turn hawkish despite rising inflation. The political turmoil was not helping the currency either.

Polish inflation rose 1.7% in June from the same month a year ago, a bit faster than 1.6% predicted by economists. Month-on-month, consumer prices fell 0.2%. The data did not look good enough for the National Bank of Poland to start raising interest rates, especially as the controversial judicial reform may have unexpected negative consequences to the nation’s economy due to worsening relationships with the European Union and deteriorating investment climate.

USD/PLN rose 0.11% to 3.6236 as of 12:48 GMT today.

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