Polish economy could see currency strengthen

Poland is taking a closer look at its economic situation in a bid to stabilise its currency.

According to Bloomberg, the country's central bank is likely to announce that it will keep the interest rate at a record low of 3.5 per cent.

The news provider surveyed a total of 24 economists, all of which believed the interest rate would be held.

An economist at Citigroup's polish division, Bank Handlowy SA, commented: "Demand-side pressures are likely to be weak in the coming quarters, as suggested by retail sales and unemployment data, helping to lower inflation below the central bank's target.

"The council will once again leave rates on hold and will probably refrain from rate changes in the coming months."

Poland was one of a few countries to experience recent economic growth, with retails sales rising by 2.5 per cent in January after a 7.2 per cent increase in December.

The country's currency is the zloty.

Posted by Sarah Pitton

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