Jan. 16 (Bloomberg) -- The zloty eased and bond yields declined as the World Bank reduced its global growth forecast and amid mounting expectations the Polish central bank will cut interest rates next month.
The zloty lost 0.2 percent, weakening for the fourth day in five, to 4.1217 per euro at 6:17 a.m. in Warsaw. Yields on 10-year notes fell 1 basis point, or 0.01 percentage point, to 4.02 percent, increasing for a second day.
Emerging-market stocks fell as the World Bank projected the global economy will expand 2.4 percent this year, down from a June forecast of 3 percent. Poland’s inflation rate fell to 2.4 percent, below the central bank’s target, a report showed yesterday, bolstering expectations for a fourth rate cut in as many months in February.
“The zloty is suffering from deteriorating sentiment globally,” Joanna Bachert, an analyst at PKO Bank Polski SA, said in an e-mailed report today from Warsaw. “It’s also due to expectations for a rate cut and technical factors as the euro has built a strong support at 4.1 zloty.”
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