Polish Zloty Faces Pressure as Inflation Hits 2.5% Target, ING Says
Polish inflation fell to the National Bank of Poland's 2.5% target, leading markets to price out rate hikes and begin pricing in cuts, which could pressure the zloty, according to ING strategist Frantisek Taborsky.
Poland's inflation has dropped to the National Bank of Poland's 2.5% target, as noted by ING strategist Frantisek Taborsky. The decline is broad-based, while core inflation remains stable.
Markets have responded by fully pricing out any remaining rate hike expectations and are now starting to price in future rate cuts. Taborsky warns this shift could pressure domestic market rates and weaken the Polish zloty against the euro.
The zloty has been under attention as the NBP's policy stance changes, with the new inflation data supporting a more dovish outlook.
Source: FXStreet Forex News