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Polish Yields Hit Record Low on Speculation of November Rate Cut

Poland’s five-year bond yields slid to a record low after two monetary policy makers talked about cutting borrowing costs as soon as next month.

The yield on notes maturing in July 2017 fell three basis points, or 0.03 percentage point, to 4.08 percent as of 5:40 p.m. in Warsaw. The zloty traded little changed at 4.0984 per euro.

The Polish currency depreciated to a two-week low yesterday and bond yields fell after industrial output shrank the most in more than three years, according to data compiled by Bloomberg. The data shows a “more decisive” rate cut is needed next month, Elzbieta Chojna-Duch, a member of the Monetary Policy Council, told reporters in Warsaw today. A rate cut in November may start a “short cycle,” PAP newswire cited policy maker Anna Zielinska-Glebocka as saying.

“The industrial output data sealed a rate cut in November,” Janusz Dancewicz, the Warsaw-based chief economist of DZ Bank Polska SA, wrote in a research note. “The central bank may now try to send a strong signal that it’s not oblivious to what’s happening with economic growth and will cut rates by 50 basis points straight away.”

Speaking separately in an interview with PAP, fellow rate- setter Adam Glapinski said he “won’t rule out” voting in favor of easing at the Nov. 6-7 meeting.

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

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

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