Polish Zloty Hits Multi-Month Lows Versus Euro and Czech Koruna on Rate-Cut Outlook

The Polish zloty fell sharply on expectations that Poland’s central bank may cut interest rates, sliding to a 19-month low against the euro and a two-and-a-half-year low against the Czech koruna. According to Jin10, Poland’s central bank governor, Adam Glapinski, hinted at future rate cuts at a Thursday news conference, a day after the bank kept its policy rate unchanged at 3.75%, in line with expectations. Commerzbank’s Tatha Ghose said in a report that the renewed outbreak of conflict between the United States and Iran was unexpected. Ghose added that the idea that developments involving Iran could force Poland’s central bank to raise rates had “vanished.”