The Monetary Policy Council at its one-day meeting on On October 6, it unexpectedly raised the reference rates by 40 bp. to 0.50%, Lombard by 50 bp. to 1.0%, rediscounting bills of exchange to 40 bp. to 0.51%, discount bills of exchange by 40 bp. up to 0.52 percent The MPC kept the deposit rate at 0.0%. This means an increase in the installments of loans taken in zloty.
None of the economists surveyed by PAP Biznes before the October meeting of the MPC (20 centers) expected changes in interest rates this month.
“The Council set the NBP interest rates at the following level:
– reference rate 0.50 percent on an annual basis;
– lombard rate 1.00 percent on an annual basis;
– deposit rate 0.00% on an annual basis;
– rediscount rate 0.51% on an annual basis;
– discount rate of bills of exchange 0.52 percent. on an annual basis “- it was written.
The resolution of the MPC comes into force on October 7, 2021.
Last year, the Monetary Policy Council cut interest rates three times: on March 17, April 8 and May 28. The interest rates were raised for the last time on May 10, 2012.
MPC and interest rates – October decision
The decisions of the Council affect the wallets of Poles. In the event of a reduction in interest rates, borrowers can expect lower loan installments. At the same time, very low interest rates – currently the lowest in history – are also a symbolic interest rate on money that we put on a deposit or savings account.
NBP president on interest rate hike
On Tuesday, the president of the National Bank of Poland, Adam Glapiński, stated that the necessity to adjust the monetary policy, ie to raise the interest rates, is approaching. However, the head of the central bank added that this should not obscure the broader picture of the challenges facing the Polish economy.
– We say with full conviction that inflation is temporary, but we have to see if this temporary inflation resulting from external supply shocks does not transfer to the economy in the form of a spiral of prices and wages, wage demands in particular. This is not the case at the moment. (…) But what will be (such a situation – ed.) In 2-3-4 or 5 quarters, because we are relying on it, if we believe that such a threat exists, we will need to definitely withdraw monetary accommodation, i.e. low feet, he added.
Moreover, Glapiński stated that lowering the level of NBP asset purchases “almost to zero” is the equivalent of an increase in interest rates.
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