Zloty Sets Six-Week High on Polish Rate Speculation, Euro DataMaciej Onoszko
The zloty strengthened to a six-week high on speculation that Poland’s policy makers may end a series of interest-rate cuts at tomorrow’s meeting and after better-than-forecast retail sales in the euro region.
The zloty strengthened as much as 0.5 percent to the highest since Jan. 18 and traded at 4.1276 per euro, a 0.4 percent advance, at 5:39 p.m. in Warsaw. Yields on 10-year government bonds rose seven basis points, or 0.07 percentage point, to a nine-day high of 4.05 percent.
Poland’s Monetary Policy Council will deliver a quarter-point cut in interest rates to 3.5 percent tomorrow, according to 22 out of 38 economists surveyed by Bloomberg. The remaining 16 expect rates to stay unchanged after four quarter-point reductions in as many months. Retail sales in the 17-nation currency bloc gained 1.2 percent from a month earlier, beating a median prediction for a 0.3 percent gain.
“We have seen good figures throughout the day plus the market was positioning for tomorrow’s rate decision,” Karol Zaluski, chief foreign exchange dealer at ING Bank Slaski SA, said in an e-mailed comment.