There will be no reduction in interest rates? Economists have dark visions

There will be no reduction in interest rates?  Economists have dark visions

The Monetary Policy Council will soon announce its decision on interest rates. Economists, however, do not count on interest rate cuts.

On Wednesday, June 5, the Monetary Policy Council will decide on the interest rates. Economists, however, have no illusions and do not expect any reductions. Moreover, claims are being made more and more often that decisions on reducing interest rates may be postponed.

Will the Monetary Policy Council lower interest rates?

On Wednesday, June 5, we will learn the Monetary Policy Council's position on interest rates. Economists predict that there will be no reductions and rates will be kept at the same level. This is not very good news for borrowers who have to pay much higher mortgage installments due to inflation.

When were interest rates lowered?

The Monetary Policy Council carefully monitors the economy and the inflation rate. It last decided to reduce interest rates in Poland in October 2023. The reference rate was then reduced by 25 basis points and dropped to 5.75%.

Borrowers then felt relief, and mortgage installments decreased slightly. However, as of October 2023, interest rates are still at the same level, even though inflation is falling. The MPC explains that the inflation level is also influenced by the increase in wages, which increased by over 11 percent compared to 2023. For this reason, the Monetary Policy Council makes decisions carefully.

Economists do not expect a reduction in interest rates on June 6, even though European trends are heading in a different direction. Specialists believe that the European Central Bank will announce a reduction in interest rates on Wednesday, June 6.

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