The Ministry of Finance will start issuing one-year bonds with coupons equal to the National Bank of Poland’s (NBP) interest rate, Mateusz Morawiecki, the Prime Minister, has announced.
“The Ministry of Finance is launching a new type of one-year bond based on the NBP’s reference rate, now at 5.25%,” Morawiecki said on May 11.
Morawiecki added that new two-year bonds would also be based on the NBP’s rate, but they would carry an additional premium.
The new bonds will become available later this month, Morawiecki said.
Poland’s central bank embarked on its interest rate hike cycle last autumn and raised the reference rate from the record low of 0.10% to 5.25% in several hikes, as it made a belated attempt to rein in inflation.
Still, the NBP has been far behind the inflation curve so far, as the latest CPI reading showed a 12.3% annual increase. (The First News/Business World Magazine)
