The inflation figure for Poland in July 2023 is 10.8% year on year. Compared to
June 2023 the index has fallen by 0.2%. For the first time since February 2022,
we witness a reduction on a month by month figure. Expectations now that either in
August or in September instant, we shall see a one figure rate of inflation.
MR Adam Glapiński, the head of BNP, the Polish national bank is of the opinion,
that when inflation reaches one digit number, the basic rate of interest, standing
currently at 6.75% should be reduced. Expectations now are that at the end
of 2024 basic interest rates shall reach 5% and at the end of 2024. They will 3.5%
at the end of 2025. However WIBOR rates are already taking into account
future reductions in the basic rate. loans with floating rates stand at 6.72%
for 3M loans and 6.7% for 6M loans.
As to prospective interest rates, the goal of the Central Bank is to reach an
annual inflation of 2.5%. however expectations are for 3.5% of annual rate of inflation
at the end of 2025.
Comments