Bank deposits will be more attractive

”In April, an unexpectedly strong increase in the basic interest rate will soon increase the attractiveness of deposits, as banks will offer higher interest rates. However, the scale of this phenomenon will certainly be varied," Maciej Pieczkowski, General Director of the Inbank branch in Poland, assessed.

In response to the strongly growing inflation, which, according to the preliminary data of the Central Statistical Office, amounted to 10.9 percent, the Monetary Policy Council raised the basic reference interest rate in April from 3.5 to 4.5 percent and it was the strongest move in many years.

"In a situation of moderate dynamics of price growth, savings holders may defend themselves against this phenomenon by choosing more risky financial instruments, but giving chances to achieve higher profits. However, when inflation exceeds 10 percent, they are in a losing position, and excessive risk-taking may end up losing a large part of your capital. In such conditions it is a rational tactic to limit yourself to the simplest and safest solutions, which are bank deposits," Maciej Pieczkowski added.

(WBJ)