UniCredit Warns of Election Risk for Polish Zloty
Currency analysts at UniCredit expect the Polish Zloty to remain stable around 4.30 against the Euro until mid-2027, according to a recent forecast.
The current EUR/PLN exchange rate is around 4.32, but UniCredit predicts only a modest improvement from this level. The bank's projection implies that the Polish currency will not see significant gains in the coming years.
The reason behind this relatively steady forecast lies in higher energy prices limiting Poland's interest-rate cuts. Rising global bond yields, fiscal concerns, and regional geopolitical tensions have also increased selling pressure on Central and Eastern European currencies.
As Poland approaches the 2027 election, UniCredit becomes more cautious about its exchange-rate forecast. The bank sees considerable uncertainty over the next governing coalition following the split in the conservative PiS party and the strengthening of radical-right parties.