No reason for zloty to weaken, says deputy finance minister

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No reason for zloty to weaken, says deputy finance minister
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WARSAW (Reuters) - Polish Deputy Finance Minister Artur Sobon hopes the zloty will stabilise as there is no fundamental reason for it to weaken, he ...

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STORY CONTINUES BELOW THESE SALTWIRE VIDEOSWARSAW - Polish Deputy Finance Minister Artur Sobon hopes the zloty will stabilise as there is no fundamental reason for it to weaken, he told catholic radio on Thursday.

Poland's currency has been in rapid descent, dropping 4% after Polish rate-setters unexpectedly slashed borrowing costs by 75 basis points last week, although it rebounded slightly on Wednesday. "There is no reason in the real economy for this type of phenomenon to continue any longer. ... I want to emphasize that the government is very keen on the exchange rate stabilizing'" Sobon said.

"... an exchange rate between 4.4 and 4.6 , is the optimal rate because, on the one hand, it fits into the logic of falling inflation, and at the same time ... it allows the economy to develop." The deputy minister also said that the government may use liquidity tools to stabilise the situation. He did not provide other details.

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