In Poland mortgages are 1 of the most popular ways of financing a home or apartment. However, due to advanced interest rates, more and more people are having problem paying off credit instalments. In this context, Karol Nawrocki's appeal to the Monetary Policy Council to reduce interest rates is very important.
The Monetary Policy Council (PRP) is the body liable for setting interest rates in Poland. The decisions of the MPC affect the economy, inflation and interest rates. Therefore, Nawrocki's appeal is addressed to the MPC to decide to reduce interest rates.
Rafał Trzaskowski, another presidential candidate, commented on Nawrocki's appeal, stating that he had been demanding interest rates reductions for months. Trzaskowski suggests that Nawrocki should turn to Jarosław Kaczyński, president of Law and Justice, alternatively than to the RPP.
By reducing interest rates, millions of borrowers can relax. Credit instalments will be lower, which means people will have more money for another needs. The economy will besides benefit from lower interest rates due to the fact that people will have more money at their disposal, which can stimulate consumption and investment.
Simon Holovnia, candidate of the 3rd Way for President, besides calls for a simplification in interest rates. Hołównia stated that Poland is the champion of Europe of costly loans, which means that Poles pay more for loans than residents of another European countries. Hołownia asked NBP president Adam Glapiński to ask for a simplification in interest rates.
NBP president Adam Glapiński stated that there are presently no grounds for reducing interest rates. Glapinski listed as causes a strong increase in inflation with advanced wage dynamics, increased base inflation and a progressive economical recovery. The main interest rate of the Polish central bank is presently 5.75%. The last time the RPP lowered interest rates in October 2023.
It is worth noting that interest rate cuts may besides have negative effects, specified as increases in inflation or currency weakness. Therefore, the RPP must carefully consider the decision to reduce interest rates.
In Poland mortgages are 1 of the most popular ways of financing a home or apartment. Interest rate cuts can aid millions of borrowers, but can besides have negative effects. Therefore, the Monetary Policy Council must carefully consider the decision to cut interest rates.
Figures show that mortgages are increasingly popular in Poland. In 2022 the value of mortgage loans amounted to over PLN 120 billion. The average amount of mortgage credit was over PLN 250 thousand. The debt was over 25 years on average.
It is worth noting that interest rate cuts can besides have affirmative effects on the economy. By reducing interest rates, loans can become cheaper, which can stimulate consumption and investment. The economy can besides benefit from interest rate cuts as people will have more money at their disposal.
In conclusion, interest rate cuts can have both affirmative and negative effects. The Monetary Policy Council must consider very carefully the decision to reduce interest rates so that the economy and people can benefit from this decision. The figures show that mortgage loans are increasingly popular in Poland, which means that interest rate reductions can aid millions of borrowers.
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Mortgage loans: how a simplification in interest rates can aid millions of Poles
