Interest rate discounts will occur at the beginning of the third quarter, at the latest in September, and in the whole 2025 it will be 50-100 base points – says a member of the Monetary Policy Council Ludwik Kotecki, quoted by “Puls Biznesu”.
– In my opinion, this will happen this year, although President Adam Glapiński is now eating from it. This will happen at the beginning of the third quarter, at the latest in September – Kotecki, quoted by “PB”.
Interest rates. What can the scale of reductions be?
– In my opinion, the scale of reductions is a minimum of 50 base points, because there is space for it. It could be 100 points, but it can be difficult this year – he added.
He added that the monetary policy would remain restrictive not only because of the level of interest rates, but also by strengthening the zloty and quantitative strengthening, i.e. the lack of rolling of Covid bonds in the NBP portfolio.
According to the MPP member, in order to achieve the optimal Policy Mix, the fiscal policy should be a bit more restrictive and the monetary policy is more loose.
Interest rates
At the beginning of February, the Monetary Policy Council maintained NBP interest rates at an unchanged level. The MPC has recently lowered interest rates in October 2023.
After the decision to maintain interest rates at the current level, the main NBP rate – reference rate – is still 5.75 percent, and the lombard rate 6.25 percent. on an annual basis. The deposit rate has been maintained at 5.25 percent, the NBP bills of exchange rates is 5.80 percent. on an annual scale, and the discount rate of the bills of exchange – 5.85 percent on an annual basis.
Source of the main photo: Shutterstock