Back
5 May 2016
PLN remains vulnerable – Rabobank
Piotr Matys, Strategist at Rabobank, noted the Polish currency still remains under pressure.
Key Quotes
“While PiS officials continue to dismiss any form of criticism, a fairly controversial set of reforms already damaged Poland’s reputation amongst foreign investors”.
“Moreover, it fuelled domestic tensions and caused a rapid deterioration of the relationship between Warsaw and Brussels”.
“The risk that other rating agencies could follow S&P and downgrade Poland hasn’t diminished. Consequently, the Polish zloty will remain volatile”.
“That said, if the PiS changes its course and adopts a more rational approach, it would improve demand for the zloty, which is the highest yielding currency in the CEE3 as the Polish central bank refuses to cut the benchmark rate, which currently stands at 1.50%”.
Key Quotes
“While PiS officials continue to dismiss any form of criticism, a fairly controversial set of reforms already damaged Poland’s reputation amongst foreign investors”.
“Moreover, it fuelled domestic tensions and caused a rapid deterioration of the relationship between Warsaw and Brussels”.
“The risk that other rating agencies could follow S&P and downgrade Poland hasn’t diminished. Consequently, the Polish zloty will remain volatile”.
“That said, if the PiS changes its course and adopts a more rational approach, it would improve demand for the zloty, which is the highest yielding currency in the CEE3 as the Polish central bank refuses to cut the benchmark rate, which currently stands at 1.50%”.