Jakob Christensen, Chief Analyst at Danske Bank, sees the Polish Zloty appreciating to the 4.16 area vs. the single currency within a year’s view.
Key Quotes
“As expected, EUR/PLN has remained relatively stable over the past month. The tensions between the EU and Poland in the late summer have abated”.
“However, continuing modest underlying inflation pressures mean limited scope for central bank tightening, despite very strong economic expansion. We expect the cross to be in ‘wait and see’ mode as we wait for a pickup in underlying inflation, rolling our EUR/PLN forecast and still expecting that higher inflation will prompt a repricing of the NBP’s rate path longer term, adding support to PLN”.
“Our forecasts for EUR/PLN are 4.23 in 1M (4.24), 4.22 in 3M, falling to 4.18 in 6M and 4.16 in 12M”.
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