Zloty Rises as NBP Does Not Plan Cutting Interest Rates

The Polish zloty appreciated today as the nation’s central bank left its key reference rate unchanged and signaled that it is not going to reduce borrowing costs in the future.

The National Bank of Poland kept its benchmark interest rate at 2.5 percent. Such decision was expected by market analysts. The bank said in the statement that global and domestic growth improved somewhat in the second quarter of this year. The central bank concluded:

    Given low inflation pressure and a moderate scale of the expected recovery, in the Council’s assessment interest rates should be kept unchanged at least until the end of 2013, which will support return of inflation to the target in the medium term.

USD/PLN went down from 3.2458 to 3.2357 as of 15:44 GMT today.