Glapiński Signals Polish Rates High Enough, Cools Hawkish Bets
Glapiński’s dovish signal that Polish rates are high enough slashed rate hike expectations, diminishing the zloty’s rate advantage. The zloty dropped as markets priced out further tightening, with USD/PLN rising as the dollar gained relative appeal.
- ▲ Glapiński’s statement that rates are ‘high enough’
- ▲ Market repricing of NBP rate hike expectations
- ▼ Inflation data surprises to the upside forcing NBP to reconsider
- ▼ Global risk-off strengthening the dollar
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Why is USD/PLN rising?
The dovish turn by NBP Governor Glapiński reduced expectations of future rate hikes, making the zloty less attractive relative to the dollar. Traders sold zloty and bought dollars, pushing the pair higher.
What is the outlook for USD/PLN after the NBP decision?
With rates likely on hold and potential cuts ahead, the zloty faces headwinds. If the Fed maintains a hawkish stance, USD/PLN could test resistance at 4.20 in the short term.