(Bloomberg) — Polish borrowing costs are being kept near zero as record new cases of Covid-19 reignite concerns about the economic outlook.

While some central bankers have urged interest-rate increases to be considered next year, analysts see little chance of a move before then. The bank left its benchmark at a record-low 0.1% on Wednesday, as predicted by all analysts surveyed by Bloomberg.

Despite monthly data signaling the European Union’s biggest eastern economy saw an improvement last quarter, daily infections are now four times what they were in the spring, raising the prospect of restrictions being reimposed on businesses.



Polish central bank's hold on rates pushes short-term yield near zero


© Bloomberg
Polish central bank’s hold on rates pushes short-term yield near zero

“The trajectory of virus development in Poland and in the world is still a powerful risk factor,” Mbank economists led by Marcin Mazurek said in a research note. “We won’t see interest-rate hikes in Poland until the economy accelerates and inflation rises above the target. This scenario is probably only for 2022.”

Markets agree, pricing in no change to the benchmark for at least a year and pushing yields on government debt toward zero. The zloty, meanwhile, has also slipped, losing 1.9% against the euro last quarter. That’s unlikely to worry the Monetary Policy Council, which has been pushing for a weaker currency to underpin the economic recovery.



Adam Glapiński wearing a suit and tie: Poland's Central Bank Governor Adam Glapinski News Conference As Rates Held And Hawks Sidelined


© Bloomberg
Poland’s Central Bank Governor Adam Glapinski News Conference As Rates Held And Hawks Sidelined

Adam Glapinski

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Central bank Governor Adam Glapinski has called the current benchmark “fair,” suggesting Poland won’t follow Hungary in raising rates. Uncertainty about the pandemic and slowing inflation mean monetary

A disputed outcome to the upcoming U.S. presidential election in November is now the primary concern for investors, topping a second wave of coronavirus.

This is according to a survey carried out by deVere Group, who asked over 700 clients ‘What is your biggest investment worry for the rest of 2020?’

The number one investment worry was a contested U.S. election (72%); the effect of a second wave of Covid-19 (18%) and the U.S.-China trade war (5%). The remaining 5% was comprised of geopolitical issues such as Brexit.

The 735 people who took part in the poll are resident in the UK, North America, Europe, Asia, Africa, Latin America, and Australasia.

We can clearly see that investors across the globe are starting to become seriously concerned about the U.S. presidential election.

However, it’s not about whether Trump or Biden comes out on top, it’s about the impending possibility of a disputed outcome.

As it stands, President Trump is already questioning the election’s legitimacy, increasing the chances of a contested result and subsequent constitutional crisis in the world’s largest economy.

Therefore, investors have become increasingly fearful that this will lead to massive bouts of volatility in the markets in the U.S. and around the world.

It’s highly likely that any volatility stemming from the election will have an immense impact for perhaps two to three weeks.

As always, investors should remain in the market at this time. Indeed, to my mind, there are two key reasons why investors should build up their portfolios during times of volatility.

First are the benefits over the long-term. Of course, there are many unknowns, but the performance of stock markets does tend to go up over the longer-term.

As such, for this very reason, investing in equities over the long-term is typically universally recognized as