WARSAW, March 13 (Reuters) - The Polish zloty is beginning to stabilise after surging to 15-month highs earlier this week, Poland's central bank governor Slawomir Skrzypek said on Saturday.
The Polish currency stood at 3.885 to the euro on Friday after shedding some ground after several recently-appointed members of the central bank's policy council threw doubt on markets' expectations for rises in interest rates.
The zloty had gained nearly 6 percent against the common currency this year, prompting concerns it could hurt exports and stall Poland's economic rebound.
'After a clear appreciation (of the zloty) there was a light depreciation and right now we're seeing stabilisation,' Skrzypek told reporters.
On Wednesday, Skrzypek said fundamentals did not justify the state of currency markets, although the previous week he boosted the zloty by speaking of the possibility of a rate increase.
Skrzypek also said on Saturday that Poland's inflation could fall to 1.5 percent in the middle of the year, more than two percentage points below January's levels.
'In the middle of the year we should reach the bottom of the (central bank's) band,' he said.
Poland's central bank seeks to keep inflation within 1 percentage point of its 2.5-percent target. Several Polish policy makers have said they expect consumer price growth to slow to 2 percent or less in the summer months before accelerating again.
(Reporting by Pawel Bernat, writing by Chris Borowski) Keywords: POLAND ZLOTY (chris.borowski@reuters.com; +48 22 653 9712; Reuters Messaging: chris.borowski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Polish currency stood at 3.885 to the euro on Friday after shedding some ground after several recently-appointed members of the central bank's policy council threw doubt on markets' expectations for rises in interest rates.
The zloty had gained nearly 6 percent against the common currency this year, prompting concerns it could hurt exports and stall Poland's economic rebound.
'After a clear appreciation (of the zloty) there was a light depreciation and right now we're seeing stabilisation,' Skrzypek told reporters.
On Wednesday, Skrzypek said fundamentals did not justify the state of currency markets, although the previous week he boosted the zloty by speaking of the possibility of a rate increase.
Skrzypek also said on Saturday that Poland's inflation could fall to 1.5 percent in the middle of the year, more than two percentage points below January's levels.
'In the middle of the year we should reach the bottom of the (central bank's) band,' he said.
Poland's central bank seeks to keep inflation within 1 percentage point of its 2.5-percent target. Several Polish policy makers have said they expect consumer price growth to slow to 2 percent or less in the summer months before accelerating again.
(Reporting by Pawel Bernat, writing by Chris Borowski) Keywords: POLAND ZLOTY (chris.borowski@reuters.com; +48 22 653 9712; Reuters Messaging: chris.borowski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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