Feb. 15 (Bloomberg) -- The zloty fell for a second day, set for its biggest weekly retreat in a month, on speculation an inflation report will show the slowest pace in 29 months, spurring the central bank to cut interest rates.
The currency edged lower amid signs the euro area, Poland’s biggest export market, is mired in its deepest contraction since 2009. Polish consumer price growth probably slowed to an annual rate of 2 percent in January, according to the median of 30 economist forecasts on Bloomberg ahead of the statistics office report at 2 p.m. in Warsaw. The central bank has cut rates four times since November to bolster the economy.
“Inflation will signal to investors what the central bank is going to do next,” Joanna Bachert, an analyst at PKO Bank Polski SA in Warsaw, said in an e-mailed comment today.
The zloty eased 0.1 percent to 4.1825 per euro at 1:18 p.m. in Warsaw. It lost 1.1 percent this week for the steepest loss after the Indian rupee among more than 20 emerging-market tracked by Bloomberg. The yield on 10-year notes fell two basis points, or 0.02 percentage point, to 4.06 percent.
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