EUR/PLN: Higher volatility rather than direction for the Zloty – ING

The Polish Zloty has stabilised slightly above 4.60 against the Euro in recent days. Economists at ING analyze EUR/PLN outlook ahead of next week's National Bank of Poland (NBP) meeting.

EUR/PLN should remain near current levels until next week's NBP meeting

For now, a 25 bps rate cut seems the most likely scenario for us. The market is pricing in a bigger rate cut at the moment and remains on the dovish side. Thus, the scope for repricing is more hawkish in case of a surprise, which could support the Zloty. 

At the moment, however, we see higher volatility rather than direction for the PLN, which should remain near current levels until next week's meeting.