Political Fragmentation Clouds Polish Zloty Outlook – Commerzbank

Commerzbank analyst Tatha Ghose flagged that a split within Poland's ruling Law and Justice (PiS) party is adding political uncertainty. Former prime minister Mateusz Morawiecki has left PiS to form a new grouping called Development Plus, which is currently polling above the 5% threshold needed to enter the Sejm. The fragmentation could complicate coalition dynamics and weigh on policy continuity, clouding the outlook for the Polish zloty. The currency has already faced headwinds from a dovish central bank and geopolitical risks, and the added political noise may keep the zloty under pressure in the near term.