Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Zloty Drops to Seven-Week Low After Poland Begins Rate-Cut Cycle

Nov. 8 (Bloomberg) -- The zloty weakened to a seven-week low after Poland’s central bank said yesterday it began a series of interest-rate cuts to boost sputtering economic growth.

The zloty depreciated 0.7 percent to 4.1704 against the euro at 6:47 p.m. in Warsaw, the weakest since Sept. 20. It slipped 1.5 percent in a four-day losing streak for the steepest slide among 31 major currencies tracked by Bloomberg.

Policy makers reduced the main interest rate by 25 basis points yesterday, Poland’s first since 2009, and Governor Marek Belka told reporters the central bank was embarking on an “easing cycle” with a “rather significant” chance of another cut in December. The move coincided with the European Commission yesterday cutting its 2013 growth outlook for Poland to 1.8 percent from 2.6 percent as the euro area debt crisis curbs exports and domestic demand weakens.

“The start of the easing cycle will act to weaken the zloty by the end of the year,” Janusz Dancewicz, chief economist at DZ Bank Polska SA, wrote in an e-mailed comment today.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.