Economy
19:46 16 March 2020
Post by: WBJ

Interest rate reduction dangerous for the economy: PKO BP

Interest rate reduction dangerous for the economy: PKO BP
Source: Pixabay

The Monetary Policy Council (RPP) is likely to lower interest rates soon. PKO BP economists point out, however, that a potential reduction in the face of a coronavirus pandemic will not only not help the economy, but it can hurt.


According to bank economists, the reduction in rates may significantly disrupt the operation of the credit channel, which in the face of an epidemic is already difficult.


“Moreover, by deteriorating the financial stability of the banking sector, it may deprive the economy of leverage that would allow for faster recovery when the pandemic passes,”  they added.


Economists of the largest bank in Poland suggest that the NBP should act as the European Central Bank.


"The ECB eased capital requirements and enabled banks to use capital and liquidity buffers. At the same time, it introduced the preferential interest rate TLTRO program aimed at lending to the SME sector. An alternative could be the funding for growth program similar to that introduced in Hungary in 2013,” they wrote.


(300gospodarka)

pko bp
economy
rpp
interest rates

More News

lifestyle

LifeStyle
3 hours ago

‘YouTube has become a global video library during the pandemic’: Susan Wojcicki

LifeStyle
1 day ago

'My dream is to build a mini-hotel in Portugal': dancer Ewa Szabatin

LifeStyle
3 days ago

‘The pandemic has shown us that work and study are a privilege’: Dorota Szelągowska

LifeStyle
9 days ago

Kinga Sawczuk wants to promote pro-ecological attitudes

Book of Lists

Book of Lists
5 months ago

The largest Polish companies under the Book of Lists microscope! Book of Lists 2020/2021 certificates have been awarded.

Book of Lists
1 year ago

25th jubilee edition of Book of Lists – project start

advertisement