Zloty Weakens 1st Time in Three Days as IMF Cuts Growth Estimate

The zloty weakened for the first time in three days after the International Monetary Fund cut Polish economic growth forecast to the slowest pace since 2009.

The zloty depreciated 0.1 percent to 4.0708 per euro as of 11:55 a.m. in Warsaw, the second-steepest decline among more than 20 emerging-market currencies tracked by Bloomberg. The yield on five-year notes rose two basis points, or 0.02 percentage point, to 4.20 percent.

Expansion in Poland, the European Union’s largest eastern economy, will decelerate to 2.4 percent this year, and 2.1 percent in 2013, from 4.3 percent in 2011, the IMF said in its World Economic Outlook late yesterday. That bucks the trend for emerging European economies that will expand at a faster pace next year, driven by a recovery in the crisis-hit euro area.

“The zloty may retreat somewhat,” Grzegorz Maliszewski, chief economist at Bank Millennium SA (MIL) in Warsaw, wrote in e- mailed report. “The IMF cutting growth forecast is consistent with weaker currency.”

To contact the reporter on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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