Polish Finance to issue bonds based on NBP rate

Polish Finance to issue bonds based on NBP rate

The Polish Ministry of Finance will issue one-year bonds with coupons equal to the National Bank of Poland's NBP interest rate, according to Mateusz Morawiecki, the prime minister.

The Ministry of Finance is going to launch a new type of one-year bond based on the NBP's reference rate, now at 5.25 percent, Morawiecki said on Wednesday.

Morawiecki said that new two-year bonds would also carry an additional premium because they would be based on the NBP's rate.

The bonds will be available later this month, according to Morawiecki.

Poland went up its interest rate hike cycle last autumn and increased the reference rate from the record low of 0.10 percent to 5.25 percent in several hikes as it tried to rein in inflation.

The latest CPI reading shows a 12.3 percent annual increase, which is far behind the inflation curve.