Capital Economics: Zloty remains weak after Poland keeps interest rates unchanged.

The Polish zloty remained weak against the euro, and the market reaction was minimal after the Polish central bank kept its benchmark interest rate unchanged at 3.75%, as expected. The central bank stated that future decisions will depend on inflation and growth prospects, which are influenced by the "external macroeconomic situation," referring to the Iran war. The bank stated that it will take all necessary actions to ensure macroeconomic and financial stability, and may intervene in the foreign exchange market. William Jackson, an economist at Capital Economics, said in a report that despite the US-Iran ceasefire and the Polish government taking measures to curb fuel prices, the likelihood of a rate cut is low, and it is more likely that the status quo will be maintained. The euro rose 0.1% against the zloty to 4.2549 zloty, with minimal change compared to the level before the interest rate decision was announced.