Thursday’s currency quotes confirm that the zloty maintains strength against major currencies. This is supported, for example, by yesterday’s information stating not only wage growth, but also employment in the economy.
Wage and employment growth in the Polish economy
Today’s quotations of the zloty were certainly influenced by yesterday’s data confirming further growth in wages and employment in the Polish economy. Indeed, average wages are currently growing by 12.2%, which is still below inflation. On the positive side, however, is the data on rising employment, which, even though at high levels, is still growing by about 0.4% on an annual basis. As a result, wage pressures can be counted on to continue to increase as a result of the dwindling supply of workers in the market.
The zloty maintains strength
With positive data coming out of the economy, the zloty continues to maintain its strength. In fact, today one euro should be paid at PLN 4.43, a rate that equals this year’s lows. The dollar is also weakening, and is currently trading below PLN 4.05, the lowest level in more than a dozen months. As a result, experts’ predictions that the dollar will fall below the 4 zloty mark by the end of the year are increasingly likely to come true. This is also confirmed by its weakening against the euro. Indeed, the EUR/USD pair is currently trading at 1.10.
Swiss interest rate hike
The zloty is strengthening not only against the dollar and the euro, but also the Swiss franc, which is currently priced at 4.51. This is despite the Swiss central bank raising interest rates. Indeed, they rose from 1.5% to 1.75%. The Swiss interest rate hike came despite the country’s slowing inflation rate, which currently stands at 2.2% and is approaching the central bank’s target. However, the Swiss are not about to declare success in the fight against inflation too soon, as evidenced not only by the current interest rate hike, but also by the announcement of another one, which would take place in the fall.
Interest rates around the world
Today, not only did the Swiss publish their decision on interest rates, but also the Czechs, who kept them at their current level of 7%. Norway, on the other hand, decided on a big hike, as interest rates there were raised by as much as 50 basis points, against a forecast of 25 points. This confirms that the fight against inflation in many countries is not yet over, and that central banks, understanding the seriousness of the situation, are either maintaining a restrictive monetary policy or tightening it even further.
The price of the zloty is currently stable, and our currency is gaining against the world’s major currencies. This is a result of falling inflation and the stabilization of interest rates, which are still being raised in many countries. Today, decisions in this regard will still be announced in England and Turkey. Especially in the latter country, high increases can be expected, which should reflect the difficult economic situation.