PL   EN

Treasury

In recent years, following a series of interest rate cuts announced by the Polish Monetary Policy Council and by its counterparts in other countries, interest rates have hit a historical low. As a consequence, bank loans have become much cheaper, which in its turn resulted in low deposit rates that no longer offer investors a satisfactory profit. In fact, were it not for low inflation rates, holders of bank deposits would bear losses. The above situation has led to a significant growth of the corporate and government bond market. As far as government bonds are concerned, it should be noted that the size of the market of bonds issued by certain countries has multiplied, both in terms of the trade volume and in terms of the number of traders on the market. Another noteworthy development is the discount at which bonds issued by some economies are traded; in some cases, the discount reaches several dozen percent. It is our view that the existing market conditions offer investment opportunities with a potential for double-digit returns on investment.