Scandal Underwhelms Traders Burning for Poland Rate Cuts
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Derivative traders are increasing bets that Poland will cut interest rates, downplaying prospects that the tape scandal embroiling central bankers to politicians will affect monetary policy.
Forward-rate agreements show wagers for a quarter-point rate cut within three months, the most since secretly taped recordings of central bank Governor Marek Belka and the Interior Minister Bartlomiej Sienkiewicz went public on June 14. Bonds and the zloty held onto gains after Prime Minister Donald Tusk asked lawmakers for a vote of confidence to bolster his government amid the crisis. Lawmakers voted 237 to 203 in favor of the cabinet late yesterday.