Zloty Depreciates, NBP's Wnorowski Toes Rate Panel's Collective Line

EUR/PLN has added 145 pips to last trade at PLN4.7703, after printing new three-month highs at PLN4.7873. Should the rate break above Nov 16 high of PLN4.7848, bulls could take aim at the 61.8% retracement of the Sep 30 - Dec 26 bear leg at PLN4.7945. On the flip side, bears keep ana eye on Feb 2 low of PLN4.6787.

• POLGBs have sold off this morning, with yields last seen 13.3-17.1bp better off. Benchmark 10-year POLGB/Bund spread has widened at the margin, albeit it remains relatively close to the recent cyclical narrows.
• During his post-MPC press conference, Governor Glapinski said that the Polish Zloty is a "strong" currency and there is no need for its appreciation at the moment, which applied some pressure to PLN Thursday.
• NBP's Henryk Wnorowski told Biznes24 TV that it is too early to discuss interest-rate cuts at this stage, echoing yesterday's comments from Governor Adam Glapinski. The official noted that inflation will most likely top +17% Y/Y in January and exceed +18% Y/Y in February.
• The NBP will publish the minutes of its January monetary policy meeting later today.