Interest rate cut will boost demand for loans - BIK

Strong interest rate cuts, combined with the "Safe 2% Loan" program, are creating a significant demand boost in the housing market, particularly in the secondary market, according to Waldemar Rogowski, the chief analyst of the economic information office BIK Group. The unexpected 75 basis point cut by the Monetary Policy Council (MPC) on Wednesday was a market shock, as expectations were for a 25 basis point reduction. This will increase demand for loans, as lower interest rates boost creditworthiness, especially for long-term housing loans. 

The "2% Loan" program is driving demand among eligible borrowers and also encourages those who were hesitant due to price concerns to act quickly, further increasing demand. With limited supply in the primary market, the surge in lending activity may shift to the secondary market, potentially driving up property prices.

Source: obserwatorfinansowy.pl