This is not what the borrower expected. An important message of the MPC

ByValeska
Kredytobiorcy

The MPC for the 16th time in a row decided to maintain interest rates at an unchanged level. The main reference rate for almost 1.5 years is 5.75 percent. on an annual basis.

On Wednesday, a two -day meeting of the Monetary Policy Council ended. The body decided to keep interest rates at the current level for the 16th time in a row. They are:

  • reference rate 5.75% on an annual basis;

  • 6.25% lombard rate on an annual basis;

  • 5.25% deposit rate on an annual basis;

  • Redskonta rate of bills of exchange 5.80% on an annual scale;

  • Discount rate of bills of exchange 5.85% on an annual basis.

Interest rates again unchanged

Interest rates have remained unchanged from November 2023. We will certainly hear about the motives of today’s decision during tomorrow’s press conference of the President of the National Bank of Poland (NBP), and also the chairman of the council Adam Glapiński. During the February conference, the head of the Central Bank argued that in connection with inflation forecasts, “there are currently no reasons for changing interest rates”.

Glapiński admitted that he is aware that high interest rates are painful for some sectors of the economy and borrowers, but – as he emphasized – from the point of view of inflationary trends, there is no reason to reduce interest rates. The President of the National Bank of Poland announced that further RPP decisions regarding interest rates would depend on the incoming data.

Another member of the MPP Ludwik Kotecki approaches this issue a bit differently. In his opinion, the first conclusions regarding interest rate reduction are possible in April. Then the council will have appropriate macroeconomic data. Kotecki emphasizes that most of the MPP members expect a moment when you can decide to cut interest rates in a responsible way. In his opinion, a projection showing the return of CPI consumer inflation to the NPB target (it is 2.5 percent with a deviation of ± 1 percentage point) over 6-8 quarters will definitely be the basis for starting the discussion and preparing a plan to reduce interest rates for the future.

We would like to remind you that according to preliminary estimates of the Central Statistical Office (GUS), consumer inflation in January this year. amounted to 5.3 percent year on year. This is the worst reading since December 2023, when 6.2 percent were recorded.

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