PFR Head Flags Disinflation Versus Exporter Pain Dilemma, NBP's Glapinski Holds Presser

EUR/PLN operates within a familiar range, with all eyes on the NBP. The pair last deals +35 pips at 4.3315 and its 20-EMA kicks in at 4.3642, while Mar 4, 2020 low of 4.2870 provides the initial layer of support. This comes as USD/PLN oscillates around unchanged levels, consolidating above the psychological 4.00 figure crossed earlier this week. POLGB yields are 2.3-4.8bp lower, with the belly of the curve outperforming.

• The National Bank of Poland (NBP) kept interest rates unchanged yesterday, while the only noteworthy tweak to the statement was related to the language around zloty appreciation and its impact on disinflation (phrasing it as an observation of the current state of affairs rather than in conditional terms). Governor Adam Glapinski will hold his press conference at 14:00GMT/15:00CET.
• While the NBP flagged positive implications of a firmer PLN, state development fund PFR chief Pawel Borys said that the current levels of the exchange rate are becoming a burden for exporters, with more than 20% of them selling at a loss. The official told PAP news wire that "the threshold [in EUR/PLN] for profitable exports has moved from around 4.20 before the pandemic to 4.40-4.45 after the pandemic".