ING: Dovish NBP Tone Puts Polish Zloty at Risk of Downside

ING economists Rafal Benecki and Adam Antoniak argue that the National Bank of Poland's (NBP) dovish stance is raising downside risks for the Polish zloty.

According to the analysts, diminished expectations for additional monetary tightening by the European Central Bank (ECB) and the Federal Reserve (Fed) are reducing external pressure on the zloty. This shift, combined with the NBP's accommodative posture, creates a challenging environment for the currency.

The comments suggest that the zloty may face headwinds in the near term as global central banks pause their tightening cycles.