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6 Nov 2015
Polish zloty expected to gain traction – Rabobank
FXStreet (Edinburgh) - Piotr Matys, Strategist at Rabobank, sees the Polish currency pushing EUR/PLN to the 4.05 level within a year’s time.
Key Quotes
“While the zloty has been underperforming its CEE peers recently, we have not abandoned our cautiously positive view as reflected in our 12 month forecast set at EUR/PLN 4.05”.
“Our baseline scenario assumes that the PiS will adopt a more pragmatic approach to public finances and will backpedal on at least some of its proposals in the coming months”.
“We would also argue that such a strong mandate is an opportunity for the PiS to implement structural reforms that would lead to a robust and sustainable GDP growth”.
“However, if the PiS starts implementing its costly pre-election pledges and relies on dubious measures to finance these, Poland’s positive image amongst foreign investors will quickly deteriorate”.
“We will be monitoring closely to what extent the PiS will remain committed to its pledges and will adjust our view accordingly in the coming months”.
Key Quotes
“While the zloty has been underperforming its CEE peers recently, we have not abandoned our cautiously positive view as reflected in our 12 month forecast set at EUR/PLN 4.05”.
“Our baseline scenario assumes that the PiS will adopt a more pragmatic approach to public finances and will backpedal on at least some of its proposals in the coming months”.
“We would also argue that such a strong mandate is an opportunity for the PiS to implement structural reforms that would lead to a robust and sustainable GDP growth”.
“However, if the PiS starts implementing its costly pre-election pledges and relies on dubious measures to finance these, Poland’s positive image amongst foreign investors will quickly deteriorate”.
“We will be monitoring closely to what extent the PiS will remain committed to its pledges and will adjust our view accordingly in the coming months”.