Bloomberg News

Polish Yields Hit Low as Central Bankers See Cuts; Zloty Gains

December 10, 2012

Polish 10-year bond yields dropped for a fourth day to a record low after two policy makers signaled the central bank will cut rates next month and before a report expected to show inflation is slowing.

The yield on notes due on October 2023 fell eight basis points to 3.87 percent as of 5:19 p.m. in Warsaw, having declined eight basis points last week. The zloty advanced 0.3 percent to 4.1082 against the euro.

The central bank cut borrowing costs for a second time in as many months last week, reducing the main interest rates by a total of 50 basis points to 4.25 percent. Poland remains in monetary easing mode, policy maker Elzbieta Chojna-Duch said on TVN CNBC today. A rate cut in January is almost certain, fellow central banker Adam Glapinski told PAP newswire today. A report due on Dec. 13 will show the inflation rate dropped to 2.9 percent in November, a two-month low, according to a median estimate in a Bloomberg survey of 31 economists.

“Morning comments from Chojna-Duch and Glapinski confirm prospects for an interest-rate cut in January,” Aleksandra Bluj, a fixed-income analyst at Bank Pekao SA (PEO) in Warsaw, said in an e-mailed report. “While the expectations are strong, the yields may decline further.”

To contact the reporter on this story: Piotr Skolimowski in Warsaw at

To contact the editor responsible for this story: Gavin Serkin at

Toyota's Hydrogen Man
blog comments powered by Disqus