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Zloty Drops as MPC Signals Weaker Currency, Possible Rate Cut

  • Governor Glapinski sees bank ready to intervene against zloty
  • Currency is down 2% vs euro this month, most in eastern Europe
Adam Glapinski

Adam Glapinski

Photographer: Piotr Malecki/Bloomberg
Updated on

Poland’s currency dropped as much as 1.4% on Wednesday after members of the country’s Monetary Policy Council called for a weaker zloty and its chief said it was ready to consider cutting borrowing costs.

While the current, record-low reference rate of 0.1% is “appropriate and best suits the situation,” the central bank may reduce it further in the first quarter of 2021, Governor Adam Glapinski said in an excerpt of an interview published on its website, obserwatorfinansowy.pl, late Tuesday.