The first wave of coronavirus caused the MPC to cut interest rates sharply. She reacted quickly and decisively. As a result, the main interest rate dropped from 1.5% between March and May. up to 0.1 percent
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Now, in the face of the second wave of COVID-19, some economists speculated on the possible next MPC actions. As for interest rates, they will not change by the end of the year.
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At the meeting ended on Wednesday, the Monetary Policy Council kept interest rates unchanged. The main (reference) rate is 0.1%, and the others are also close to zero.
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They will leave a billion dollars in Poland. “We confirm. The construction works are underway”
This means that the interest rate on money in transactions between commercial banks and the NBP has not changed. Thus, no major changes can be expected in the tables of interest rates on deposits and loans offered to retail customers and companies.
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This is good news for loan repayments. Worse with savers. It is difficult to count on higher interest on deposits. Offers at 0.1 or 0.01 percent are no longer surprising.
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On the other hand, installments of previously taken loans should remain low. Compared to the rates from before the pandemic, there are savings of up to PLN 200 (in the case of typical housing loans).
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Some may ask themselves: why the MPC cut interest rates practically to zero? In this way, monetary policy is to support the government’s actions in the fight against the negative economic effects of the coronavirus epidemic.
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Low interest rates at banks have, inter alia, stimulate consumers to spend money (instead of keeping it in interest-free accounts) and companies to invest (thanks to low interest rates on loans). Cheap money is also supposed to support families and companies that have been hit hardest by the crisis.
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1h ago
p5And inflation over 3% …. continued robbing of citizens.
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1h ago
thenSo inflation continues to gallop …
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1h ago
ShameThe bank pays us 0.1% for our savings, and when it grants us a loan, it charges almost 10% – this is usury – where law and justice are here – these are … Read the whole thing
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