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Interest rates – July 2022. WIBOR 3M, WIBOR 6M down – for the first time since the beginning of May 2022

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On Friday, WIBOR indicators fell for the first time since the beginning of May 2022. The amount of the loan installment depends on these indicators. Still, the three-month and six-month WIBOR remain at the highest levels since 2004. How much are WIBOR 3M and WIBOR 6M currently?

The Monetary Policy Council at its meeting on Thursday raised interest rates by 50 basis points. The main benchmark interest rate rose to 6.50 percent. This is the highest level since August 2004.

The WIBOR ratios, on which the amount of the loan installment depends, also go up. The series of increases, lasting nearly two months, was interrupted on Friday.

WIBOR and the bank’s margin are components of the interest rate on loans. Some banks use the WIBOR 3M (three-month) rate, which means that the mortgage interest rate is updated every three months from the moment the loan is disbursed. In the case of WIBOR 6M (six-month), the interest rate is updated every six months.

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WIBOR 3M, WIBOR 6M – what they are

On Friday, WIBOR 3M was at the level of 7.08 percent, which meant a decrease of 0.84 percent. This is the first cut since May 9 this year. At that time, WIBOR 3M fell by 0.32 percent.

WIBOR indices are determined on each business day. From September 2021, we had to deal with six drops in the WIBOR 3M level.

WIBOR 3M in the last three monthsstooq.pl

WIBOR 6M amounts to 7.38 percent and decreased by 0.67 percent. For this indicator, it was the first decline since May 12 this year. At that time, WIBOR 6M fell by 0.15 percent.

WIBOR 6M in the last three monthsstooq.pl

At the same time, WIBOR 3M and WIBOR 6M are still at the highest levels since 2004.

The above rates include likely rate increases or cuts that may occur during this period. This means that if we have had or will have an updated amount of installments in the last days, it will be in July an increase in interest rates it is already included in it.

How much will interest rates rise further?

The president of the National Bank of Poland and the chairman of the MPC, Adam Glapiński, during the Friday press conference, announced that if inflation will persistently continue to grow, the Council will continue to raise interest rates. “If it stabilizes during the summer and goes down, we won’t do it,” he added.

As Glapiński said, “those feet that are now are approaching their upper level – maybe they have reached, maybe they are close”. – (…) we do not know what the situation will be in September and October. We will see what is happening with inflation, what is happening abroad, what is happening in the markets, but maybe, and maybe not, we will continue to raise rates, if inflation rises, we will raise rates, the head of the central bank announced.

Also read: How much can loan installments increase? Calculations

The next decision-making meeting of the MPC will be held on September 7. According to the current schedule, the meeting scheduled for August 23 will be non-decision.

PAP / Maciej Zieliński

Bartosz Turek, the main analyst of HRE Investments, pointed out on Thursday on TVN24 BiS that “the norm is that the three-month WIBOR differs from the basic interest rate by about 20-25 basis points”. – So in total, the three-month WIBOR takes into account not only this decision (in July – ed.), Which has already been taken, but even the next one – explained Turek. – WIBOR already takes into account that we will have an interest rate hike in September – he added.

Main photo source: Shutterstock

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