Foot down, and installments down. President of ZBP: up to PLN 70 less

Even PLN 70 less in a monthly loan installment will benefit the borrowers with a loan of 400,000. PLN for a period of 20 years thanks to the decision of the Monetary Policy Council to reduce interest rates in July – Tadeusz Białek, president of the Polish Bank Bank Association, informed PAP.

The Monetary Policy Council (RPP) on Wednesday, at the end of the two -day meeting, decided to lower interest rates by 25 base points – the National Bank of Poland (NBP) informed. Thus, the reference rate is 5.00 percent. To the existing ones, 5.25 percent The last reduction of the foot took place in early May. The MPC reduced them then by 50 points. base; The reference rate fell from 5.75 percent. up to 5.25 percent

President of the Polish Bank Association Tadeusz Białek, commenting on the PAP's decision, the MPC pointed out that most experts did not expect a reduction at the July meeting, because it was expected to happen in September. However, he reserved that the decision of the MPC is part of the script in which, in the opinion of many experts, by the end of the year the NBP reference rate is to amount to 4.75 percent.

“Of course, it depends on external factors, e.g. the severity of pro -wire phenomena, mainly associated with the increase in geopolitical risk,” he emphasized. He pointed to the conflict in the Middle East or the war in Ukraine. “These are events that may affect the process of interest rate reduction,” he noted.

Protein said that the 25 base points reduction is relatively small – especially at the May reduction by a 50 pb. He added at the same time that he would translate into a reduction in interest rates. As he pointed out, e.g. in the case of a variable interest rate on e.g. 400,000 PLN for a period of 20 years it may be up to PLN 70 less in a monthly loan installment, but in the horizon of the entire loan period taken in January this year. For 20 years for the amount of 400,000 PLN may mean about 20,000 less.

The President of ZBP added that in the case of loans with a fixed interest rate, only new borrower will feel the MPC decision.

He pointed out that while the reduction of interest rates has a negative – though small, because “we are talking about 0.25 percent here” – Impact on banks' revenues, this is also the other side of the coin.

“Reductions give the perspective of increasing the availability of loans for both natural persons and entrepreneurs, also directly affect the increase in creditworthiness,” he noted.

He noted that in the case of entrepreneurs, the cost of the loan is not mentioned in the top three barriers hindering investments. Usually – as he said – this is the 5th or 6th place. “However, it certainly does not remain without influence as one of the elements that entrepreneurs can take into account when analyzing the decision on the investment undertaking” – assessed the president of the ZBP.

He emphasized that with a total reduction with 75 base points, the cost of the loan will be noticeably lower than at the beginning of this year, which may translate into increased interest in consumers and entrepreneurs.

Jacek Stankiewicz (PAP)

JLS/ MALK/ LM/