Evidence from the international markets shows that the responsiveness of financial instruments" prices to monetary policy announcements tends to weaken in a low level interest rate environment. The objective of our study is to verify if a similar effectexisted in Poland when interest rate decreased from high to low levels over time. The focus of our paper is the currency market. We use GARCH class models with dummy variables as our main methodological tool. In the case of interest rate announcements, we distinguish between the nominal changes in interest rate and surprise changes.
