– The euro will be weaker and weaker and the Polish currency will also weaken. The policy of negative interest rates leads to this – he said in an interview with MarketNews24 Przemysław Kwiecień, Ph.D., chief economist at XTB.
Polish currency with problems
Today, inflation in Poland is not very high, but unfortunately this may change. The reason may be potential negative interest rates. Theoretically, they should stimulate economies, but are harmful in the long run.
– Negative rates have already plunged part of the world because they do not stimulate development in the long run. The euro area has now followed this direction – said April.
It is known that the euro may also have problems due to the fact that the lockdown policy in Europe will last at least until the end of April. If the euro loses against the dollar, the zloty will also weaken against the US currency.
When the euro holds tight, the ECB may want to scare the markets with negative interest rates and stimulate the economy with it. According to April, it is possible to further reduce interest rates. by the central bank. The goal will be to bring down the euro, which theoretically could help markets get back on their feet and boost exports. But it’s a rather dangerous policy that can end in failure.
– I allow a further reduction of interest rates, I also allow negative rates – said the President of the National Bank of Poland Adam Glapiński during the January conference.
He added that the rate cut will depend on the general economic situation. A possible rate hike is in his eyes “abstraction”
– There may be a need for further easing of monetary policy, including by lowering interest rates. We still have a lot of room to lower rates, we analyze all scenarios and we will not hesitate to implement the scenario that will be needed to overcome the economic collapse – he said during the same meeting with the media.
Silver is an investment hit
April also entered the topic of silver.
– Silver appeared on the Reddit portal and the same people who were interested in GameStop actions decided that silver should be another subject of their attack – he said in an interview with MarketNews24. – This was again an attempt to attack the funds that were playing against the fall in silver prices – added.