Zloty Extends Rally Despite Recent Barrage Of Dovish NBP Comments

EUR/PLN remains under pressure and the Zloty continues to pace gains in the EMEA space, despite the potential headwinds to the Polish currency outlined our previous bullet. The rate refreshed cyclical lows at PLN4.5694 and last deals -330 pips at PLN4.5745, with bears looking for losses towards May 30, 2022 low of PLN4.5599.

• POLGBs trade on a firmer footing, last 4.7-5.7bp richer across the curve. The WIG20 Index has traded sideways over the past three hours or so and last sits ~0.8% above neutral levels.
• A stream of comments from NBP officials pointed to stronger dovish leanings, with Governor Adam Glapinski reiterating that he was hoping for rate cuts in late 2023. In addition to remarks from Henryk Wnorowski and Ireneusz Dabrowski, who put a rate-cut debate by the end of 2023 on the table, Gabriela Maslowska told TVP Lublin that inflation could fall to single digits even in early autumn.
• The NBP will announce its next monetary policy decision on May 10 and are widely expected to prolong their pause in interest-rate action.