Bloomberg News

Polish Bond Yields Fall as Bratkowski Calls for More Rate Cuts

January 22, 2013

Polish bond yields declined after policy maker Andrzej Bratkowski said the central bank should cut its benchmark rate by another percentage point in the coming months.

The yield on notes maturing in April 2018 fell two basis points, or 0.02 percentage point, to 3.53 percent by 4:01 p.m. in Warsaw. The zloty weakened less than 0.1 percent to 4.1710 per euro.

Without further rate reductions the economy will “stagnate,” Bratkowski said in an interview in Warsaw yesterday. Governor Marek Belka said on Jan. 9 that a “certain round” of monetary-policy easing may be coming to an end after the bank shaved the main rate by a cumulative 75 basis points to 4 percent since November.

Bratkowski’s “comments may give an important impetus to the rates market,” Aleksandra Bluj, an analyst at PKO Bank Polski SA in Warsaw, said in an e-mailed note today.

Investors in the forward rate agreements market expect the central bank will reduce borrowing costs by another 84 basis points, based on a gap between nine-month contracts and three- month Warsaw Interbank Offered Rate compiled by Bloomberg.

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

To contact the editor responsible for this story: Wojciech Moskwa at

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