Poles favour government bonds amid high interest rates
Polish investors have been increasing their government bond holdings as interest rates continue to be attractive while inflation has subsided, the central bank's data show.
The National Bank of Poland (NBP) has kept its reference rate at 5.75 percent for the ninth consecutive month in July and its governor has signalled that the first rate cuts may take place as late as 2025. Meanwhile, inflation has fallen from a record high of 18.4 percent in February 2023 to less than 3 percent this year.
This has spurred Poles to move their savings to bonds, whose coupons are directly impacted by the central bank's high rates.
According to NBP, the share of bonds in the assets of households reached the highest level in decades.
"The 6 percent share recorded in May is the highest since December 2000, the oldest data available to us," NBP said in a comment sent to PAP.
The value of government bonds sold in the first half of this year reached PLN 38.6 billion (EUR 9.07 bln) and was over two times higher compared to the same period of 2023, the finance ministry data show. (PAP)
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