Interest rates in Poland should rise faster than the market currently expects, taking into account the recent macro data – said Adam Glapiński, president of the National Bank of Poland (NBP).

According to Bloomberg, Glapiński will convince the Monetary Policy Council (MPC) to extend the series of rates growths this year.

In December 2021, Glapiński said that depending on the circumstances, interest rates in Poland could increase to around 3 or even 4%.

However, economists pay attention to the NBP president’s comment that the rates should be even at the level “higher than the current market expectations”. And it means that interest rates may soon increase up to 5%.

Such an increase would make huge difficulties for borrowers. The experts calculated that an instalment of a loan taken for 25 years and for PLN 300,000 would be over 2.100 PLN. And at the beginning of October 2021, the same loan meant an instalment of only 1.300 PLN.

The next meeting of the Monetary Policy Council will be held on Tuesday, February 8. The members of the Council will then know the level of inflation in January and it will be a key fact to make decisions on interest rates. Economists estimate that the inflation rate in January may be around 9.5%.

Adrian Andrzejewski