Zloty Catches Bid, NBP Official Says It's Too Early To Discuss Rate Cuts

EUR/PLN has punched through its worst levels of the week and continued to move lower, with the Zloty sitting atop the EMEA scoreboard today. The rate last deals at PLN4.7282, down 233 pips on the session, hitting new two-week lows. A break below PLN4.7217, which limited losses on Feb 8, would expose key support from Feb 2 low of PLN4.6787.

• POLGBs have advanced, wiping out their initial losses. Yields last sit +1.7bp to -4.7bp across the curve, with 5s outperforming. The local equity benchmark WIG20 remains afloat, poised to snap a five-day losing streak.
• NBP's Henryk Wnorowski told PAP newswire that he does not see a justification for discussing rate cuts at this point, as inflation remains elevated and reaching the inflation target is a distant prospect. The policymaker reaffirmed official communications and his own recent comments, noting that the rate-hike cycle has not been formally ended. The Polish central bank will announce its next monetary policy decision on March 8.