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ECB QE will only have a limited effect on złoty

PR dla Zagranicy
Roberto Galea 22.01.2015 16:24
The private and public bond-buying programme announced Thursday by ECB head Draghi is unlikely to have a major effect on the Polish currency in the short run.

The euro fell against the złoty Thursday afternoon following the announcement by the head of the European Central Bank, Mario Draghi, that starting in March, the ECB will begin a EUR 60 billion-a-month programme to buy back bonds.

The move is to last until at least September 2016.

While the złoty is expected to remain strong against the euro over the coming days, experts question whether this is able to counteract the effects the QE will have against other currencies.

Marcin Lipa, an analyst at Cinkciarz.pl, told IAR that it is yet to be seen whether the strengthening of the złoty against the euro will make up for the rise in value of the Swiss franc.

More than half-a-million Polish families have felt the pressure of the strengthening franc, following last week’s decision by the Swiss National Bank to remove the currency’s cap against the euro.

In the long run, “the move by the ECB should also support the złoty against the euro, as it could revive the economic situation in the euro zone,” Szymon Zajkowski, an analyst at DM mBank wrote in a statement. (rg)

tags: ECB, euro, zloty
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