Poland investigating leak of rate hike
WARSAW, Poland: Acting on the request of Poland's central bank, prosecutors
launched an investigation on Friday into a report that a decision to raise
key interest rates in February was leaked to some investors.
Julita Sobczak, spokeswoman for Warsaw prosecutors, said the course of the
investigation would be kept secret "because of the nature of the information
and its importance for the country."
Bank officials said earlier this month that their decision to raise key
interest rates on February 23 had been leaked a few hours in advance and had
called for an inquiry.
Despite rising inflation, most analysts had not expected the move because of
a boost in key rates in November. Poland's largest daily newspaper, Gazeta
Wyborcza, has reported that one investment bank made big deals in Polish
currency just hours before the decision was announced at a news conference.
Exclusive advance knowledge of rate increases, which effectively raise the
cost of borrowing throughout the economy, could allow currency traders to
reap big profits at the expense of others who don't expect rate changes.
(AP)
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