20:16 20 October 2026
ECB: applying central bank rate to variable rate mortgages introduces legal uncertainty
The European Central Bank warned that using Poland’s NBP policy rate as a benchmark for variable-rate mortgages could create legal uncertainty. Central bank policy rates fall outside the EU Benchmark Regulation unless the bank voluntarily applies its standards, leaving mortgage users without protections such as contingency plans if a benchmark changes or ends. The ECB said market benchmarks such as Euribor and €STR are better suited to financial contracts and supported by derivatives markets for hedging.
Linking mortgages to a policy rate could speed monetary-policy transmission, but operational changes unrelated to policy direction could still alter borrowers’ payments and potentially constrain central bank independence. Poland’s Finance Ministry had requested opinions on the proposal from the banking sector and KNF.
