Photo: Agencja Gazeta / Reuters
The Polish authorities have unleashed a currency war with its neighbors in Eastern Europe, says the analyst of investment Bank Rabobank Peter Matus, quoted by Bloomberg.
He commented on the policy of the Polish Central Bank three times since the beginning of the year reduced its key interest rate, on the aggregate of 1.4 percentage points to 0.1 percent. The regulator has justified such actions as concern that inflation is too weak and will not reach the desired 2.5 percent.
According to Matiza, in reality the Central Bank is afraid of too much strengthening of the zloty as a result, export success of domestic firms. Last been able to capture part of the market due to the reformatting of the supply chain and displace Asian competitors as the lifting of restrictions due to the coronavirus.
However, export growth turns out to be a strengthening of the national currency, which plays into the hands of the importers but disadvantage exporters. The rate reduction results in reduced influx of foreign investors who can buy up the zloty for investments in Polish assets and to strengthen his course even more.
Assessment Matisa, the actions of the Polish Central Bank may launch a chain of similar action by other countries of Eastern Europe, particularly the Czech Republic and Hungary. They all belong to the EU but are not members of the Eurozone, keeping its own currency.
Video, photo All from Russia.