NBP Says It Never Considered POLGB Buying To Finance Military & Infrastructural Spending

The National Bank of Poland (NBP) told PAP newswire that its Management Board has never considered, and is not planning to consider, buying bonds to finance the government's infrastructural or military spending.

• The news agency was inquiring about recent comments from MPC's Ireneusz Dabrowski, who floated the idea in an interview. He had earlier been quoted as suggesting that the NBP could offload its bond holdings (QT), should the government decide to abruptly terminate its anti-inflationary measures.
• Some have interpreted Dabrowski's mutually contradictory comments as part of the ongoing political turmoil around the central bank. There have been suggestions that his remarks represented a carrot and a stick for the government amid its plans to launch a probe into Governor Adam Glapinski.
• Despite some informal hints from Dabrowski and Glapinski, the NBP's official line so far has been to deny that QT or any targeted bond purchases are being actively discussed, while any such suggestions were merely private opinions of individual officials. The Governor also stressed that the NBP was not planning QT.
• The matter may draw some more attention once the situation around Governor Glapinski gets clearer, with the ruling coalition looking to set up a parliamentary committee to investigate him in the second half of March.