WARSAW: Poland's central bank should stay calm in face of a potential weakening of the zloty in the aftermath of Britain's referendum on whether to remain a member of the European Union, one of the bank's policymakers said.
Poland's economic fundamentals are healthy enough to keep the zloty from weakening past 5 to the euro if Britain votes to quit the EU, Jerzy Kropiwnicki told Reuters.
"We have a stable economy, healthy fundamentals, which have been tested in global turbulence compared to which Brexit is a storm in a teacup," Kropiwnicki said. "I think that in case of such turbulence one should maintain Olympian calm," he said. "A conviction the central bank would for sure defend the exchange rate would be an invitation for speculation."
The zloty touched a record-low 4.93 to the euro in early 2009 because of the global financial crisis. "I think the zloty should stay within these limits (if Britain votes to leave).
I don't think it should exceed the barrier of 5 zlotys," the rate-setter said.
Asked about interest rates, he said there was no need to fix something what has been working well. The central bank has kept interest at their record low of 1.50 percent since March last year.
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