Interest rate reduction. The expert warns against too much optimism

On Wednesday, May 7, the Monetary Policy Council (RPP) made a key decision regarding the amount of interest rates. After a two -day meeting of the MPP, she decided to cut 50 base points.

– A reduction in interest rates is good news for borrowers – loan installments may fall. It is worth remembering, however, that we will feel the real effect of these changes with a delay – e.g. mortgage loans based on WIBOR 3M or 6m will react only when the indicator is updated next – notes Piotr Juszczyk, the main tax advisor of Infakt in an interview with “Wprost”.

How much interest rates are?

This is the first reduction in interest rates since October 2023, when the MPC made cuts for the last time. Interest rates are currently:

• reference rate: 5.25 percent on an annual basis,

• Lombard foot: 5.75 percent on an annual basis,

• deposit rate: 4.75 percent on an annual basis,

• Bill of exchange rates: 5.30 percent on an annual basis,

• Discount rate of bills of exchange: 5.35 percent on an annual basis.

Interest rate reduction – leasing installments will fall

A large part of the companies will also benefit from the MPP decision

– For many entrepreneurs, it may also turn out that leasing installments will fall if they are based on a variable foot. The reduction of the foot also has the other side of the coin – the deposits and savings will be less profitable. This can be seen after bank offers, but also after May bonds – explains Piotr Juszczyk.

Interest rate reduction – loans are still the most expensive

However, as the expert reminds, the loans remain at an alarmingly high level.

– Despite the reductions, housing loans are still the only ones of the most expensive in Europe and we should think about changing the interest rates as soon as possible. This will allow borrowers to secure sudden jumps in the future – notes Juszczyk.