June 8, 2014 / 5:52 PM / 4 years ago

Poland's central bank head says ECB action may boost zloty

WARSAW, June 8 (Reuters) - The fresh round of monetary easing from the European Central Bank (ECB) has the potential to strengthen Poland’s zloty currency, Poland’s central bank Governor Marek Belka was quoted as saying on Sunday.

The zloty has already gained about two percent in the last three weeks as foreign investors jumped on the opportunity to profit on diverging interest rate paths in Poland and the euro zone.

While the ECB cut rates this month and introduced more measures to ease monetary policy in the euro zone, Poland’s central bank said it would likely keep rates on hold until the end of the third quarter of this year.

Belka said on June 3 that a rate cut in Poland was unlikely.

“What the ECB has announced and has introduced has a potential to strengthen the zloty, which is not good as it could slow down our exports, slow down our economy,” Belka was quoted as saying by Bloomberg on Sunday.

“We have registered some strengthening of the zloty, but it is not anything that can complicate our life.”

Belka was also quoted as saying that Poland would “only rejoice” if the ECB measures succeeded, because the euro area accounts for more than half of Poland’s exports. (Reporting by Marcin Goettig; Editing by Stephen Powell)

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