Central bank to support PLN to help curb inflation

Rafał Guz/PAP

Poland's central bank will help strengthen the Polish zloty (PLN) as appreciation of the domestic currency would help curb inflation, Monetary Policy Council (MPC) member Rafał Sura has told PAP.

On Tuesday afternoon, the Polish zloty continued to slide against the euro following Russia's attack on Ukraine, and was trading at 4.801/EUR at 14:22 local time, the weakest level since early 2009.

"[I]t is obvious that zloty appreciation would support us in fighting inflation," Sura said. "And as a central bank, within the framework of available means, outlined under the monetary policy strategy, we will be supporting that direction."

The Monetary Policy Council has repeatedly said in its official documents that zloty appreciation would be coherent with monetary policy, but "unfortunately, geopolitical circumstances impact the strength of the Polish currency, and our (the MPC's - PAP) influence on that is pretty limited under the conditions of a liquid FX rate," Sura also said.

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