Lowest Spreads and Flexible Terms.
NBP does not plan to raise rates in November. The złoty remains weak, with EUR/PLN above 4,40 zł
NBP cools expectations for a November rate hike
NBP President Adam Glapiński made it clear that he is not expecting an interest rate hike in November. Market reaction was limited, however, because the euro exchange rate is still moving close to 4,40 zł, and the zloty remains weaker than it was a few months ago.
At 9:16 AM on Friday, EUR/PLN stood at 4,3768 zł. That means 1000 zł could buy about 228 euros. For people exchanging larger amounts, what matters is that the nearest resistance for the euro is in the 4,39-4,40 zł area, just a few grosz higher.
In practice, that level means that when exchanging 5000 zł, the difference between a rate of 4,3768 zł and 4,40 zł is noticeable, though not dramatic. The market had already tried to break through 4,40 zł before, and two weeks ago it set a 2.5-year high for the euro-to-zloty rate.
Glapiński also said the Monetary Policy Council is ready to act if signs of so-called second-round effects appear in the economy. This refers to a situation in which elevated inflation starts to pass through to other prices and wages. For now, inflation remains above the NBP’s 2.5% target, while the benchmark rate stands at 3,75%.
USD/PLN also remains important for people earning in dollars. On Friday morning, the rate fell by more than half a grosz and moved below 3,90 zł, although on Monday the dollar was already trading at nearly 3,93 zł and was the most expensive this year. That offers a clearly better selling rate for dollars than just a few days ago.
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