No end in sight for the "loan rush"

According to data from the National Bank of Poland, in July the value of new consumer loans increased by almost zł.9 billion, i.e. over 40% yoy and was the highest since 2000. "Two interest rates increases this year is too little to curb the public's appetite," said Marcin Mrowiec, an economist with BPH, while Andrzej Bratkowski, the chief economist with Pekao, said, "Since there is a common belief that property prices will continue to increase, many people are taking loans to buy a flat. Two interest rates increases by 0.5% will not change their mind." Although the Monetary Policy Council (RPP) is expected to increase interest rate further, economists do not think that it will stem the growing propensity to borrow. "The difference between Poland and developed countries with regard to the households' debt is still large, so the value of loans in our country will probably continue to increase," said Bratkowski. (Rzeczpospolita, pp. A1, B2) E.B.