In early May, the Monetary Policy Council raised interest rates again. It was the eighth consecutive increase. The benchmark interest rate rose 75 basis points to 5.25%. It is the highest since 2008. Higher interest rates mean an increase in loan payments for millions of Poles. We checked how much the loan installments have increased after the recent interest rate hike.
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On May 5, the Monetary Policy Board raised the reference rate by 0.75 percentage points. Currently, it is already 5.25%, the highest since 2008. It was the eighth in a row Increase in interest rates In Poland’s monetary policy tightening cycle, which began in October 2021.
Many economists predicted that the rate hike would be higher. Expectations ahead of the MPC meeting indicated that prices would rise by 100 basis points. The market reaction was immediate after the benchmark rate was raised by 0.75 percentage points. Immediately after the announcement of the Monetary Policy Committee’s decision The zloty fell against the euro by more than 0.03 Polish zloty.
Other rate hikes are attributed to higher inflation, which reached 12.3% in April. It is the highest since 1998. Higher interest rates mean an increase in loan installments for people who pay off their obligations in zlotys.
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