News Parkiet

Monetary policy

MPC raises interest rates

Poland?s Monetary Policy Council has raised interest rates for the first time in four years, strengthening the zloty. Benchmark central bank rate was raised by half a percentage point to 5.75 percent compared with analyst expectations of a more modest 0.25 percent rate increase. The council cited rising inflationary pressure for its decision to raise interest rates. Most analysts now expect another rate hike by 0.25-0.5 percent later this year.

Privatization funds

7 NFI to sell glass-making plant

7 NFI privatization fund has agreed to sell its 60 percent stake in Huta Szkła Ujście glass-making plant to Germany?s Heye Holding GmbH for as much as 27 million zloty, or 7.1 million dollars. The fund, whose shares are listed on the WSE will book at least 15.7 million zloty in profits on the transaction. Shares of 7 NFI rose 15.8 percent to close at 2.64 zloty on news of the sale.

Equity markets

IDMSA.PL brokerage sees higher earnings

Poland?s second smallest equity broker, Kraków-based IDMSA.PL expects a sharp increase in net earnings this year. The broker, which plans to go public at the turn of 2005 says profits after taxes could rise to as much as 4 million zloty from PLN 0.5 million last year. IDMSA.PL has 0.5 percent share of stock trading on the WSE. It also has about 0.9 percent of Poland?s derivatives? market.