The zloty exchange rate came under noticeable pressure after the National Bank (NBP) hiked rates by only a minimal 25 bps earlier this week. Economists at Commerzbank expect the PLN to remain under pressure.

NBP governor Adam Glapinski said little of support for the zloty

“The ECB’s own updated projections, which do not foresee inflation moderating to within 2% target even by 2024, now make it harder for an individual CEE central bank to take such an opposite view about inflation.”

“At Thursday’s press conference, NBP governor Adam Glapinski said little of support for the zloty. Overall, the rhetoric did not sound hawkish or convincing, but probably in line with what the FX market already knew about Glapinski.” 

“We see the zloty weakening against the euro over the coming quarter.”