Polish Finance to issue bonds based on NBP rate

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Polish Finance to issue bonds based on NBP rate

The Polish Ministry of Finance is going to issue one-year bonds with coupons that are equivalent to the National Bank of Poland's NBP interest rate, 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 be based on the NBP's rate, but they will carry an additional premium.

Morawiecki said that the bonds will be available later this month.

Poland's central bank hiked its interest rate last autumn and raised 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 showed a 12.3 percent annual increase, which is far behind the inflation curve.