Bloomberg News

Zloty Declines as Belka Says in No Rush to Raise Polish Rates

March 27, 2012

The Polish zloty retreated after Governor Marek Belka signaled he’s prepared to wait before raising interest rates.

The zloty weakened 0.6 percent to 4.1492 per euro as of 3:28 p.m. in Warsaw for the steepest decline among 25 emerging- market currencies tracked by Bloomberg.

Being too late with an interest rate increase may be a “lesser mistake” than raising borrowing costs only to remove the move should the economy slow, Belka said in an interview published today. The Narodowy Bank Polski left its benchmark interest rate at 4.5 percent for a ninth month on March 7 as inflation remained above the 3.5 percent upper end of the central bank’s tolerance range since January 2011.

Belka is “happy” to keep rates on hold “just a while yet,” Timothy Ash, head of emerging markets research at Royal Bank of Scotland Group Plc in London, said in an e-mailed comment. “I don’t read this as saying that Belka will support rate hikes any time soon still.”

To contact the reporter on this story: Piotr Skolimowski in Warsaw at

To contact the editor responsible for this story: Gavin Serkin at

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