Zloty Declines as Polish Data May Show More Economy Weakness
The zloty slid for a second day as reports next week may show Poland’s economic situation continued to worsen and inflation slowed.
The zloty weakened 0.8 percent to 4.1188 per euro as of 4:51 p.m. in Warsaw, the biggest decline since Jan. 4. The yield on five-year notes rose 11 basis points to 3.63 percent.
Polish inflation probably slowed to the central bank’s goal of 2.5 percent in December, while industrial output slumped the most since April 2009, the statistics office will say next week, according to median forecasts from analysts surveyed by Bloomberg. The “collapse” in inflation will convince the central bank to continue cutting interest rates, Pasquale Diana and Jaroslaw Strzalkowski, economists at Morgan Stanley, said in a report today.
“Weaker economic growth and problems with this year’s budget may limit zloty appreciation in the coming weeks,” Grzegorz Maliszewski, chief economist at Bank Millennium SA in Warsaw, said in an e-mailed report today.
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