Polish cabinet reshuffle to have limited impact on PLN

Poland's Prime Minister Beata Szydlo reshuffled her cabinet on Wednesday. One of the most important changes was to relieve Finance Minister Pawel Szalamacha of his duties and appoint deputy prime and development minister Mateusz Morawiecki instead. PM said that the reshuffle was needed to make a wide-reaching economic stimulus plan more effective.

Szydlo's Law and Justice (PiS) party has pledged to spend billions of euros of private and public money to boost growth and wealth in Poland. Economists argue the move could raise further questions over the conservative government's ability to keep its budget deficit - already pressured by increased welfare spending - within European Union limits.

Szydlo's cabinet also approved on Wednesday its 2017 budget plan that envisages a deficit of 2.9 percent of gross domestic product (GDP). The Polish economy has been one of the best performing in the 28-nation EU in recent years, and the only one to avoid recession in the aftermath of the global financial crisis.

"We do not expect the reshuffling to alter the fiscal strategy in any significant way. The 2017 budget will be a key market focus in the autumn but we expect the government to meet the budget target. Reshuffling to have a limited impact on PLN," said Danske Bank in a report.