T-bonds to strengthen as rate cut cycle seen continuing, zloty seen trading in EUR/PLN 4.10-4.14 range

The Polish T-bonds should strengthen more in view of the expected further easing of the monetary policy, while the zloty was not influenced by the MPC decision and is seen trading in a EUR/PLN 4.10-4.14 range in the coming days, local playes told PAP. "The market will strengthen because we are at the beginning of the cycle - the trend may reverse as we will be approaching the end of cycle," Millennium Bank bond trader Krzysztof Szczerbinski told PAP."It could be 100 bps or even more," he said, of the expected scale of easing.The Wednesday decision and comments from the conference, "failed to surprise the market," he addedPoland's Monetary Policy council cut rates by 25 bps on continuing view to a "considerable" slowdown which could even put inflation below the central bank's target mid-term, the council said in a policy statement largely mirroring prior month rhetoric.The Polish zloty failed to react the MPC's decision or statement and is trading around EUR/PLN 4.12, BRE Bank FX dealer Marcin Turkiewicz told PAP."In the coming days, the zloty should trade in a EUR/PLN 4.10-4.14 range and is more likely to break through the lower limit than the upper one, Turkiewicz said.The Polish currency will be influenced above all by the developments on the core markets, in his opinion.WedWedTue16.4508.4015.55 EUR/PLN4,1254,12804,1333USD/PLN3,1563,14703,1569 OK07143,393,363,34PS04173,483,493,47DS10213,963,973,95

T-bonds to strengthen as rate cut cycle seen continuing, zloty seen trading in EUR/PLN 4.10-4.14 range

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