Zloty Slips As NBP Week Draws To End

EUR/PLN posted an upswing into the European morning, while POLGB yields are slightly lower across the curve as we type. The WIG20 Index has resumed losses and hovers just above its 50-DMA. When this is being typed, EUR/PLN trades +55 pips at 4.3076, with bulls looking for a rally above Feb 7 high of 4.3564. On the flip side, the focus falls on the psychologically significant 4.30 figure and Dec 13 low of 4.2935.

• Governor Adam Glapinski's comment that inflation has been defeated and is back to the target exerted some limited pressure on the zloty, but did not change much in the grand scheme of things. The Governor's rhetoric on the inflation outlook remained hawkish, consistent with his earlier comments, with the impact of the termination of anti-inflation shields representing a major source of concern.
• MPC's Wnorowski said that inflation could print at the +2.5% Y/Y or below in March, adding that the impact of the termination of anti-inflation measures could be smaller than suggested by Governor Glapinski based on the latest staff forecast.
• The NBP will publish the minutes of its February rate meeting at 13:00GMT/14:00CET but the document is unlikely to have much market impact.