Interest rates announced by the MPC are one of the most important parameters on the Polish financial market. The interest on savings and credit products offered by banks depends mainly on them. Interest rates indirectly affect economic growth and the level of inflation. The latter variable has been assuming negative values for 16 months, which also affects the suspension of decisions to raise rates.
Persistent interest rates at the current, very low level cause that the owners of financial surpluses have difficulties in multiplying them effectively. The average interest rate on annual deposits in the amount of 10 thousand today is just over 1.50 percent. (exactly 1.55 percent). The situation is even worse in the case of savings accounts in which a similar amount was kept. In their case, customers could count on an interest rate of 1.53 percent.
The last interest rate cut took place in March this year. Then the MPC lowered all its interest rates by 50 points. baseline bringing them to the lowest level in the entire history of the Polish financial market. From that moment the so-called the era of ultra cheap mortgages. This is perfectly visible especially in the readings of the average real interest rate of these products. Chart of this variable for a 30-year loan for 300,000 PLN from 10% own contribution (this value was in force in 2015) is as follows:
As can be seen in the chart, the average APRC for the said commitment since March this year. to date, it has values ranging from 4.13 to 4.23 percent. This clearly demonstrates the great stability that took place on the mortgage market in 2015.
What are the components of a mortgage?
As a result of recent interest rate reductions, the installment of liabilities repaid by borrowers is today several hundred zlotys lower than before. For example, for a housing loan of PLN 300,000 PLN incurred in January 2009, the monthly burden associated with the repayment of this liability in November 2012 was PLN 1993, while it currently oscillates around PLN 1,490. Thus, in just three years, this variable fell by as much as PLN 503.
There are many indications that the current situation on the interest rate market will be the same as in the next few months. Lack of inflationary pressure and continuing economic growth at the current level will have a stabilizing effect on decisions taken by the NatBank of Poland. In other words: loans will still be cheap.