NBP could make the difference between EUR/PLN drifting back up to 4.70 or having a go below 4.5850 – SocGen

FXStreet Insights Team FXStreet

A choppy day lies ahead for the Zloty with the National Bank of Poland (NBP) deciding on interest rates. Economists at Société Générale analyze PLN outlook.

A hung parliament would support higher EUR/PLN through 4Q23

The consensus is a 25 bps cut, but our EM team believes 50 bps is possible.

The drop in annual CPI to 8.2% creates leeway to cut again, but the size of today’s cut and the bank’s statement could make the difference between EUR/PLN drifting back up towards 4.70 or having a go below 4.5850 (200-DMA).

A hung parliament at the elections next week would support higher EUR/PLN through 4Q23.

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