The Council cuts rates, the zloty remains unmoved. Now it's time for the NBP president

Sharp May cut in interest rates at the National Bank The Polish had no major impact on the złoty exchange rate. However, this may change after the afternoon conference of President Glapiński.

In line with market expectations, the Council Monetary Policy Council decided to reduce interest rates by 50 basis points , in his statement calling the move an “adjustment.” From Thursday’s speech NBP President Adam Glapiński, market participants will try to find out whether Was it a one-time reduction or the beginning of a longer easing cycle? monetary policy in Poland.

- The key event for the złoty will be the conference of the NBP President, from which market participants hope to obtain information on the Council's next steps. In the absence of clear signals from A. Glapiński about further interest rate cuts at the upcoming MPC meetings, investors will start to doubt the current aggressive market valuations, indicating room for further NBP rate cuts on a total scale of up to 150 bps by the end of 2025 - PKO BP analysts wrote in a morning note. - In our opinion, this would give an impulse to strengthen the złoty and break the support zone between 4.26 and 4.2550 on EUR/PLN - they added.

The currency market accepted the MPC's May decision without much emotion. Same as compliant expected no change in the US federal funds rate . Reserve The federal government has adopted a "wait and see" approach and there is no indication that it will was to continue cutting interest rates in the near future. This news the dollar strengthened slightly against the euro.

Meanwhile, the euro is on the Polish The market price on Thursday morning was PLN 4.2716 and was one penny more expensive than in Wednesday evening. The euro rate is still moving in a rather narrow trend side in the range of 4.25-4.30 PLN.

For a dollar the American currency was PLN 3.7752, which is 0.6 grosz more than the day before. In the case of the USD/PLN exchange rate, the local "oyster mushroom" also applies – for almost a month now the dollar has been trading in the range of PLN 3.70-3.80.

Swiss franc rose by 0.7 groszy, reaching the price of PLN 4.5688. In the case of the franc-zloty pair in In recent days we have been seeing attempts to return to the upward trend. Here the first test will be the line of PLN 4.60, followed by the April peak lying at a height of PLN 4.66.

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