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Interest rates, mortgages. WIBOR 3M, WIBOR 6M – how much are they? Good news for borrowers

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Three-month (3M) and six-month (6M) WIBOR down after information about the end of the cycle of interest rate increases by the Monetary Policy Council (RPP). Some economists expect that in September there may be the first interest rate cut.

Falling WIBOR 3M and WIBOR 6M is good news for borrowers. WIBOR together with the bank’s margin are components of the loan interest rate. A mortgage loan with a variable interest rate based on WIBOR 3M means updating the loan interest rate every three months from the moment the loan is launched. In the case of WIBOR 6M, the interest rate is updated every six months.

WIBOR 3M, WIBOR 6M – how much are they?

WIBOR 6M is 6.89 percent, after a decrease of 0.03 percentage point. For comparison, on June 30 this year. WIBOR 6M was at 6.95 percent, now it is at the lowest level since June 1, 2022 (6.8 percent).

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For the first time since May 9. WIBOR 3M also fell. It currently stands at 6.89 percent, after a reduction of 0.01 percentage point.

“We are starting the descent from the top,” economist Rafał Mundry assessed in a Twitter post.

WIBOR rates are set every business day, their value will be known on Tuesday at 23.00.

Changes in the case of WIBOR 3M and WIBOR 6M are insignificant, thus potential reductions in installments of some mortgage loans, the interest rates of which will be updated in the coming days, will be cosmetic. However, declines in the value of benchmarks may send an optimistic signal to borrowers that this year there may indeed be a interest rate cuts.

The 3M and 6M WIBOR rates include probable increases or decreases in interest rates that may occur in the next three or six months. Thus, it gives borrowers hope for clearer cuts in both WIBOR 3M and WIBOR 6M.

Interest rates 2023

The main reference interest rate has remained at 6.75% since September 8, 2022.

PKO BP economists expect the first interest rate cut to take place in November this year. They remembered it Friday’s statement by the president of the National Bank of Poland and at the same time the chairman of the MPC, Adam Glapińskiwho said that the premise for starting interest rate cuts will be meeting two conditions: it is a single-digit current one inflation and forecasts of maintaining the downward trend in inflation.

“In our opinion, these conditions will be met in the autumn. We expect the first rate cut in November (together with the new projection), but we see the risk of an earlier move in October,” the economists wrote.

According to Citi Handlowy’s economists, this year there will be two cuts of 25 basis points each – in October and November. In their opinion, “in September the MPC will have data on August inflation, which should still be above 10 percent.”

Analysts of the state-owned Bank Gospodarstwa Krajowego do not rule out that there may be up to four interest rate cuts this year. “In our opinion, based on the statement of the President of the NBPP, the Council will be sensitive to inflation readings. Therefore, the possible scenario of four rate cuts by 25 bps by the end of the year should not be ruled out. year, starting in September at the earliest,” we could read in Monday’s commentary.

Also in the opinion of ING Bank Śląski economists, the first interest rate cut may take place in September. “Professor Glapiński basically left no doubt that the interest rate cut will take place in September by 25 bp and added that the next steps will be gradual. In our opinion, the second cut will take place in October and the total rates will fall in 2023 by around 50-75 bp. The President of NBP also added that the market expectations of cuts by 100 bps this year are ‘excessive’. In our opinion, further easing of monetary policy will take place rather in 2024,” representatives of ING Bank Śląski indicated.


Main photo source: Shutterstock

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