The Polish 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 percent,” Morawiecki said on Wednesday.
Morawiecki added that new two-year bonds would also be based on the NBP’s rate, but they will 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 has raised the reference rate from the record low of 0.10 percent to 5.25 percent 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-percent annual increase.