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Poland and Eurozone rate divergence lifts EUR/PLN

ABN AMRO expects the ECB to hike to a 2.5% deposit rate, while the National Bank of Poland holds at 3.75%, supporting revised EUR/PLN forecasts.

Reported · Written up by our desk · Major Pairs

ABN AMRO says EUR/PLN has risen as interest rate expectations diverge between the Eurozone and Poland, with policy split weighing on the zloty versus the euro, FXStreet reported. In Poland, the National Bank of Poland kept its rate at 3.75% and appears divided on whether to cut by 25 basis points after summer. By contrast, ABN AMRO expects the European Central Bank to deliver another hike, targeting a 2.5% deposit rate.

ABN AMRO said this policy divergence has prompted an upgrade to its EUR/PLN forecasts, according to FXStreet.

The same note also highlighted broader currency-market pressure, citing firmer US Dollar performance and mixed rate expectations as investors digest US economic data and other macro signals.

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