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2/2023 vol. 314
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RESEARCH PAPER
Monetary Policy Spillovers to Polish Financial Markets
Magdalena Grothe 1
 
 
 
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1
European Central Bank, Germany
 
 
Submission date: 2022-07-26
 
 
Final revision date: 2023-01-25
 
 
Acceptance date: 2023-04-04
 
 
Publication date: 2023-06-30
 
 
Corresponding author
Magdalena Grothe   

European Central Bank, Germany
 
 
GNPJE 2023;314(2):1-10
DOI: https://doi.org/10.33119/GN/163006
 
 
Article (PDF)
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References (33)
 
KEYWORDS
monetary policy spillovers
Polish financial markets
monetary policy and central bank information effects
 
JEL CLASSIFICATION CODES
F30
F42
G12
G15
 
ABSTRACT
This paper analyses the impact of monetary policy shocks from large advanced economies on Polish financial markets. I explore the spillovers from the US Federal Reserve’s and European Central Bank’s monetary policy decisions, differentiating between the effects of monetary policy and information shocks. The results suggest that the spillovers from US monetary policy are stronger and move Polish government and corporate bond yields, equity prices and the exchange rate significantly in the weeks following the announcement. At the same time, information shocks following monetary policy events in the euro area seem to have a significant effect on Polish financial markets. The findings may have interesting implications from the perspective of financial market functioning and policy-related financial market monitoring of a small open economy.
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