Finance Minister with good news. Borrowers will finally breathe a sigh of relief
Minister of Finance Magdalena Rzeczkowska shared optimistic forecasts. People who are repaying a loan will be especially happy with her words. She also mentioned interest rates.
Consumer inflation will reach single-digit levels in September, and as a result, interest rates will also fall, says Finance Minister Magdalena Rzeczkowska.
“We are currently observing a noticeably falling inflation, it will reach single digits in September. We expect that interest rates will also fall as a result. At the same time, government activities, which are the responsibility of various ministries, are characterized by flexibility and response to the changing situation on the m-nar markets and the level of inflation. – Rzeczkowska wrote on her profile on X (formerly Twitter).
“The government, observing the situation on the raw material and energy markets, is taking targeted actions to reduce inflationary pressure and protect households against the effects of the turmoil; we have implemented various complementary fiscal and protective mechanisms. We adapt them to the current situation to provide Poles with optimal protection. – we read further.
Inflation in Poland still above 10%.
As reported by the Central Statistical Office on Thursday, consumer inflation amounted to 10.1%. on an annual basis in August 2023, according to preliminary data. Compared to the previous month, prices of consumer goods and services remained unchanged. The market consensus was 10 y/y and 0 percent. m/m.
At the press conference after the July meeting of the Monetary Policy Council, the president of the National Bank of Poland (NBP) and the chairman of the Monetary Policy Council, Adam Glapiński, said that a reduction in interest rates on a scale of “type 0.25 percentage point.” is possible at the next decision-making meeting of the Council in September, assuming single-digit inflation and a 90% certainty of its further decline.
The Monetary Policy Council increased interest rates from October 2021 to September 2022 (from 0.1 to 6.75 percent in the case of the reference rate). In the following months, it kept the monetary policy parameters unchanged.
