Central European Daily

While the forint extended previous gains, both the koruna and the zloty barely moved on Wednesday. In case of the zloty, the meeting of the National Bank of Poland had probably played a role. Although the NBP changed its forecast in more or less expected direction – it revised its outlook for GDP growth to the upside while it lowered its inflation forecast (both vis-à-vis November’s projection) – some market participants seemed to be surprised by the following extension of forward guidance. After the decision, the zloty slightly weakened and yield of the 10Y government bond fell sharply and hit a four-month low.