Bloomberg News

Yields Fall, Zloty Little Changed Amid Rate Cut Speculation

March 04, 2013

Yields on Polish government bonds declined and the zloty was little changed amid speculation the central bank will cut interest rates for a fifth time since November this week.

Policy makers will reduce the Poland’s reference rate by a quarter point to 3.5 percent on March 6, according to 22 of 38 analysts surveyed by Bloomberg. The remainder expect the central bank to keep borrowing costs on hold after cutting them by a total of 100 basis points over the last four months, as the economy slowed along with inflation pressure.

“The next factor that can move the market is Wednesday’s interest-rate decision and the statement that follows the meeting,” Pawel Bialczynski, bond trader at BRE Bank SA, said by phone from Warsaw. “Bond prices were little changed today.”

The yield on five-year government bonds declined two basis points, or 0.02 percentage point, to 3.64 percent at 5:21 p.m. The zloty weakened less than 0.1 percent to 4.1388 against the euro, extending this year’s decline to 1.4 percent, the seventh- biggest slump among 31 major currencies tracked by Bloomberg.

To contact the reporter on this story: Maciej Onoszko in Warsaw at

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

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