PLN likely to weaken in the short term

Darek Delmanowicz/PAP

The Polish zloty (PLN) is expected to get weaker rather than get stronger in the short term, economists have predicted.

"The zloty remains weak, today its value to the euro opened at 4.65," Bank Pekao wrote on Wednesday morning. "In the short term, highs on the EUR/PLN exchange rate seem to be more probable than the zloty strengthening below 4.60 PLN per euro."

On Wednesday, Poland's central bank (NBP) set its fixed EUR/PLN exchange rate at 4.6614 EUR/PLN.

The day before, on Tuesday, the EUR/PLN exchange rate reached 4.67, which was the zloty's weakest level since March.

Experts from Bank Millenium said that bolstering the zloty could prove to be difficult, due to the more decisive interest rate hikes taken by other central banks in the region as compared to those taken by Poland's Monetary Policy Council.

"This drives capital towards the Czech koruna (CZK) or Hungarian forint (HUF)," Bank Millenium wrote.