May inflation rate at 3.1%, between NBP’s target rates

Poland’s lower-than-expected inflation rate of 3.1% in May has eased pressure on the central bank to raise interest rates. Markets had previously anticipated two rate hikes this year, but now expect only one, potentially in September, while some economists believe rates may remain unchanged. The inflation figure falls within the National Bank of Poland’s target range, strengthening the case for policy stability. This is good news for borrowers, as higher rates would increase mortgage repayments.

For a PLN 500,000 mortgage with 25 years remaining, a rate hike could raise monthly payments by roughly PLN 155–230. For a PLN 200,000 loan, monthly installments would increase by about PLN 62–93.

(wnp.pl)