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MPC decision (January 2024). Interest rates and loan installments

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The Monetary Policy Council (MPC) left interest rates at the same level. “Despite this stabilization, the installments of some mortgage loans will increase and others will decrease,” said Jarosław Sadowski, chief analyst of Expander Advisors.

As Sadowski pointed out, variable interest rates on mortgage loans are based on WIBOR rates, which have changed in recent months.

What about loan installments?

“Those who have a loan with a WIBOR 6M rate and who will have the interest rate updated in the near future can count on a significant decrease in the installment. Such an update takes place once every 6 months. If someone currently has an interest rate update, the same will be applied to their interest rate. rate of 5.82%, while previously it was 6.94%. As a result, the installment of the loan for PLN 400,000, for 30 years, granted in November 2020, will drop from PLN 3,199 to PLN 2,903,” wrote the analyst in comment.

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However, he added that “installments of loans based on WIBOR 3M will increase slightly.” “Three months ago, this rate was 5.7%, and currently it is 5.87%. In the case of a loan of PLN 400,000, for 30 years, granted in November 2020, the installment will increase from PLN 2,866 to PLN 2,910. The increase so it will be small and amount to PLN 44,” he said.

According to the analyst, “in both cases, the installments after the update will still be much higher than in the initial repayment period” and “for example, in the case of a loan based on WIBOR 6M, the first installment was PLN 1,566, and the next installments will be PLN 2,903.”

Loan installments after the January decision of the Monetary Policy CouncilExpander Advisors

Interest rates

During its January meeting, the Monetary Policy Council decided to maintain it NBP interest rates at an unchanged level. The reference rate is currently 5.75 percent.

Economists expected that the Monetary Policy Council would not change interest rates at its first meeting this year.

Main photo source: Kamil Zajaczkowski / Shutterstock

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