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Interest rates up? Iwuć: Higher inflation is good for the government
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– As far as the threat of hyperinflation is concerned, it is absolutely not a threat to us – said the president of the Polish Development Fund (PFR) on Friday. Borys Budka believes that the growth observed in stores cen should be visible by the end of this year. – In 2022, the growth dynamics will slowly start to decline – he added.
Interest rates may go up and loan installments with them
President of the PFR in the Afternoon conversation at RMF FM he was also asked about the issue mortgage loans. – It seems that in 2022 we will deal with an increase in interest rates (currently rates in Poland are close to 0% – ed.). Especially people with mortgage loans can pay much more in installments – he said. What may be the increase in installments credits? – It depends, of course, what the scale of interest rate increases would be. For now, what we are seeing in the Czech Republic, Hungary, we are talking about half a percentage point, so maybe not that much, but it can always be the 200-300 zlotys per month – said Borys Budka, then added: “Depending on the size of the loan, but on such an average loan, it may already be noticeable.”
The President of the Polish Development Fund recommends to be careful when deciding on a mortgage. – If someone decides to buy a flat now, I would recommend buying it on the basis of a loan with a fixed interest rate – he said.
The Czech Republic and Hungary have already raised interest rates
Recall that inflation in August it reached a level not seen in the Polish economy for 20 years. According to the GUS communiqué, it was 5.4 percent. (year on year), and was significantly higher than in July, when it reached the level of 5.0%. As we wrote in Next.gazeta.pl, tall inflation may be one of the elements of pressure on the Monetary Policy Council to finally raise interest rates. Both Hungary and the Czech Republic have decided to take this kind of step. Both countries cited too rapid a loss of value as the direct reason for their decisions money.
– All the conditions for a prudent normalization of monetary policy are already met. The optimal strategy for monetary policy in Poland at present is to raise the reference rate by 15 basis points – said Łukasz Hardt, one of the members of the Monetary Policy Council chaired by Adam Glapiński, the president of the NBP, in an interview with the ISB News agency.
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