Dec. 17 (Bloomberg) -- The zloty weakened before data this week that’s expected to show Poland’s economic slowdown is deepening, adding pressure on the central bank to reduce borrowing costs further.
The zloty retreated 0.3 percent to 4.0921 per euro at 4:34 p.m. in Warsaw. The yield on notes maturing in October 2023 fell less than 1 basis point to 3.91 percent.
Polish corporate employment probably declined 0.2 percent from a year earlier in November, the statistics office will say tomorrow, according to the median estimate in a Bloomberg survey of 22 economists. Industrial output data, to be published in two days, slowed to its weakest pace in three months, according to the survey, as demand from the euro area weakened.
“The data out this week will confirm the economic growth is slowing,” Cezary Chrapek, a fixed-income and currency market analyst at Citigroup Inc., said in an e-mailed note to clients. “It will open the way for further rate cuts.”
The economy suffered its slowest pace of growth in more than three years last quarter, prompting the central bank to cut its main rate by a quarter point in each of the two last months. Forward-rate agreements signal trader bets for 105 basis points in further cuts over the next six months.
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