Feb. 12 (Bloomberg) -- The zloty retreated for a second day as a report this week may show inflation slowed for the fourth consecutive month, giving Poland’s central bank more leeway to cut interest rates.
The zloty is the worst-performing emerging-market currency from Europe this year as the country’s economy weakens and interest rates were cut by a total of 100 basis points since November. Poland’s inflation rate probably slowed to 2 percent in January, the lowest since August 2010, from 2.4 percent in December, according to a median estimate in a Bloomberg survey of 30 economists before the data are published on Feb. 15.
“The zloty may stay under pressure today,” Szilvia Laszlo, an emerging-market economist at DZ Bank AG, said in e-mailed report today. “Inflation may stay low and economic growth is decelerating.”
The zloty depreciated 0.3 percent to 4.1671 per euro at 1:44 p.m. in Warsaw, extending this year’s decline to 2.1 percent, compared with a 0.8 weakening by the Czech koruna and less than 0.1 percent appreciation by Hungary’s forint. The yield on Poland’s 10-year notes denomiated in zloty rose two basis points, or 0.02 percentage point, to 4.07 percent.
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