Adam Pickett from Citi: ECB is putting pressure on public finances across Europe

Poland experiences strong economic growth, yet its public debt is rising rapidly relative to GDP. The European Central Bank's hawkish monetary policy and energy price sensitivity affect government bonds across Europe, including Poland. Rising bond yields are attributed more to expectations of interest rate hikes than fiscal policy concerns. Despite a resilient economy, the impact of high energy prices could strain consumer budgets if sustained. Investors show a preference for corporate bonds over government securities, indicating a shift in asset allocation. The ongoing investment cycle in Europe aims to enhance resilience against future shocks, driven by recent geopolitical events and technological advancements.