Continuing high interest rates responsible for slower growth of borrowing

According to National Bank of Poland (NBP) figures, borrowing slowed in May, despite a 1.3% increase in the average number of loans per household. Growth shrank to 22.1%, from 25.1% in April, a decline that was very much in line with expectations. Analysts predict that the current trend, of savings growing faster than borrowing, is likely to continue, because of the continuing very high interest rates. They say that even if, as they expect, interest rates are cut by 1.5 percentage points in June, zloty savings will still be very profitable, and borrowing very expensive. Money supply in May grew by 0.6% month-on-month, and by 3.5% over the first five months. This compares with growth in the January to May period last year of 1.9%. (Rzeczpospolita, p. B5) J.K.