May 19, 2022

MoviesOnline

Complete Canadian News World

Freezing WIBOR will make the fight against inflation more difficult

Freezing WIBOR will make the fight against inflation more difficult

They appeared after the latest interest rate hike Ideas to freeze rate WIBOR, which will make it easier for people to repay zloty housing loans. The head of the NBP does not support this idea.

Clearly, NBP’s assessment of such an idea is negative. First, a possible freezing of the WIBOR rate would constitute an unacceptable interference with private legal relations in a modern market economy.”

. added The implementation of such an idea will make the fight against inflation more difficult. The main channel of influence of monetary policy on the economy is the formation of interbank interest rates, which translate into debt servicing costs in the economy. “The WIBOR rate freeze fundamentally impairs the operation of this mechanism,” the NBP governor said.

The rest of the text is below the video

He noted that banks have long had to incur an increase in interest rates when assessing creditworthiness during the home loan granting process.

Since October 2021, the Monetary Policy Board has made five interest rate increases. During this period, the reference rate increased from 0.1%. Up to 2.75% The MPC raises interest rates to fight inflation, the highest in more than two decades. In December, prices of consumer goods and services increased by an average of 8.6%. per year, and in January inflation accelerated to 9.2 percent. every year.

NBP will take the necessary steps

As the head of the Polish National Bank said in an interview with “Super Express” that in Poland, Throughout 2022, inflation will be above 3.5%.It will therefore remain above the upper limit of deviations from the NBP inflation target (which is 3.5%). This means that interest rates will continue to rise. However, in the opinion of the governor of NBP, it will not cause an excessive increase in unemployment, and it will stem wage pressures.

See also  UOKiK imposed 313 thousand. Golden penalties for the Poznan product for accumulators and batteries