Loan installments up sharply due to high rate hike decision
23:40
The Monetary Policy Council headed by Adam Glapiński raised interest rates to 1.25 percent. What does this mean for borrowers? The installment of the average mortgage will increase by PLN 221 after two increases. The available loan amount will drop by as much as 12.5 percent. This is the result of calculations by Jarosław Sadowski, chief economist of Expander Advisors.
So if a year ago someone could afford an apartment with an area of 50 sqm, now it will be only 38.7 sqm.
The maximum interest rate on cash loans will also increase. Even before the October meeting, it was 7.2 percent. After the October increase – 8 percent. And now the maximum interest rate for consumer loans will increase to 9.5 percent.
The interest rate hike will also increase the interest rate on consumer loans, such as e.g. debit limits on accounts, cash loans, or credit cards.
"The interest rate here is usually equal to or close to the highest level permitted by law, ie up to 9.5 percent. I would not expect a significant increase in interest rates on bank deposits, however," Sadowski assessed.
