On October 15th parliamentary elections are being held and the interest rates “before” the elections have been reduced by exactly 1 percentage point. The Monetary Policy Council has lowered interest rates by 25 basis points. Shortly after the announcement of the decision, the Zloty strengthens significantly against the EUR and USD, as the market clearly expected a stronger cut. The yield on Polish 10-year treasury bonds falls by about 1.00%. Notably, no one knew the exact time of the MPC statement, except for the Ministry of Finance, which announced a briefing on the matter before the decision.
Szymon Gil, broker at Michael / Ström Dom Maklerski.
