Jan. 4 (Bloomberg) -- Investors in Polish interest-rate derivatives should reduce bets on looser monetary policy because of contagion risks from worsening global market sentiment, according to Societe Generale SA.

Two-year interest rate swaps, used to bet on or hedge against future changes in borrowing costs, are poised to increase to 5.04 percent from 4.76 percent, analysts at the French lender wrote in an e-mailed report to clients today.

To contact the editor responsible for this story: Krystof Chamonikolas at kchamonikola@bloomberg.net