The currency has fallen more than 3% this week against the euro. While it rebounded slightly on Friday, the mood in the market is still bearish after the central bank delivered a larger-than-expected interest rate cut that blindsided traders.
The zloty traded 0.1% higher at 4.6231 as of 1:27 p.m. in Warsaw, paring earlier gains of as much as 0.7%. The uptick spurred speculation about possible currency-market intervention, said Piotr Matys, a strategist at In Touch Capital Markets, citing conversations with market contacts. During Thursday’s news conference, Glapinski said Poland had achieved victory over high inflation, citing price growth data which the central bank doesn’t publish as a key reason behind the cut. He declined to comment on whether rates will be reduced further in 2023 but didn’t rule out any scenario, saying the MPC has adapted a “wait-and-see” stance.