Poles flee from high inflation

As noted by Aleksander Pawlak, the president of Tavex, reaching such a level proves not only the again record negative real interest rates, but also the persistence of inflation at alarmingly high levels. As a result, Poles began to turn away from currently unprofitable deposits.

"The last time we were exposed to such inflation, interest rates were around 4.5 percent. Introducing such interest rates now would imply about a threefold increase in the interest part of the loan installments (assuming a margin of around 2 percent)," noted Tavex's CEO.

In his opinion, the record low-interest rates and the sustained several percent inflation caused Poles to turn away from currently unprofitable deposits. The results of the Tavex survey from the second quarter of this year. are the best confirmation that Poles' awareness of investing and saving is increasing, which is the most desirable phenomenon.

"At the beginning of the year, investments in deposits had a significant advantage (41.5 percent), followed by shares on the stock exchange (24.6 percent), mutual funds (23.1 percent), real estate (19.1 percent), and gold (16.9 percent), while in the second quarter only 32.1 percent declared investing in deposits. On the other hand, the interest in investment funds (28.7 percent), gold (22.6 percent), and real estate (22.3 percent) increased. Stocks on the stock exchange also fell slightly (19.7 percent),” Aleksander Pawlak added.

(WBJ)