The recent weakening of the zloty has resulted in a softening of the prevailing narrative on the risks to economic growth posed by a lack of sustained exchange rate adjustment. Now the MPC notes that the momentum of economic recovery in Poland will also depend on the future exchange rate having previously spoken of the danger of too weak an adjustment in the exchange rate. The balance of payments for 2020 and January 2021 indicates that the current exchange rate level is not an obstacle to companies' competitiveness. Also, given the expected rebound in the global economy and the assumed significant acceleration in ... (full story)