Weakness of Polish Zloty Leaves Little Room for Interest Rate Cut

The Polish zloty fell today. The recent weakness of the currency led to speculations that the central bank will not be able to cut interest rates again as this can damage the zloty further.
Andrzej Kazmierczak, the member of the Monetary Policy Council of the National Bank of Poland, said:

Rate cuts obviously hurt the zloty and if the current pace of depreciation continues, it could end up having a devastating impact on bond prices and investor confidence. If the zloty keeps weakening, I can’t imagine a rate cut in July.

The zloty remained weak so far, making it likely that the central bank will refrain from additional monetary easing on its July meeting.
USD/PLN rose from 3.3165 to 3.3256 as of 12:36 GMT today.

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