Polish Central Bank Sees Zloty Drop as `Temporary'

By Monika Rozlal and Ewa Krukowska

Oct. 23 (Bloomberg) -- The National Bank of Poland said the recent decline in the zloty is ``temporary'' and the ``good condition of the Polish economy should help the currency rebound.''

The weakening of the zloty ``is not justified by Poland's macroeconomic situation,'' the management board of Narodowy Bank Polski said in an e-mailed statement today.

The zloty fell 21 percent against the euro in the past two months to 3.853 at 3:15 p.m. in Warsaw, a two-year low on rising risk aversion and a revision of Polish economic growth outlook by Credit Suisse Group AG.

The zloty may ``weaken slightly further'' this year, Credit Suisse said in a note to clients.

Poland's economic situation is ``very good'' and the current zloty weakness ``is temporary and results from global factors,'' Deputy Finance Minister Katarzyna Zajdel-Kurowska added in an e- mailed statement today. She also forecast that this year's budget deficit will be lower than the planned 27 billion zloty ($9 million).

To contact the reporters on this story: Monika Rozlal in Warsaw at mrozlal@bloomberg.netEwa Krukowska in Warsaw at ekrukowska@bloomberg.net