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Interest rates. Hołownia's appeal to Glapiński. „There is no reason for a Pole to pay more than a Czech or a German”
The Speaker of the Sejm and the Third Way presidential candidate for the Republic of Poland, Szymon Hołownia, urged the President of the National Bank of Poland, Adam Glapiński, to reduce interest rates. He stated that Polish citizens should not incur higher loan interest than those in the Czech Republic or Germany.
„Poland holds the title of the European leader in costly loans. There is no justification for a Polish individual to pay more for a loan than a Czech or a German. I have requested the president of the National Bank of Poland, Adam Glapiński, to lower interest rates,” Hołownia posted on the X platform, including a scan of his correspondence with the central bank’s head.
Interest rates. Szymon Hołownia’s appeal
The correspondence emphasizes that, considering the circumstances of economic participants, particularly Polish borrowers facing high loan repayment costs, „I urge the President, as the head of the Monetary Policy Council, to contemplate reducing the interest rates set by the National Bank of Poland”. „In Europe, there is a noticeable trend of central banks easing monetary policy. For instance, in the Czech Republic, interest rates were returned to early 2022 levels, which represents the lowest point in the past three years. Conversely, in Poland, interest rates remain 3 percentage points higher than they were at the start of 2022,” the letter states. Hołownia further mentioned that the macroeconomic and international context suggests that discussions regarding the easing of restrictive monetary policy are also warranted in our nation.
„The National Bank of Poland, in accordance with Article 227 of the Constitution of the Republic of Poland, is tasked with establishing and executing monetary policy. I firmly believe that while fulfilling its constitutional duties, the NBP is guided by data emerging from the economy, reflecting supply and demand dynamics. I am confident that the identified regional trend serves as a significant argument during the Monetary Policy Council’s discussions regarding interest rates in Poland,” evaluated the Marshal of the Sejm. He also conveyed his belief that a reduction in interest rates would provide a crucial stimulus for the overall Polish economy, as it could pave the way for investments, job creation, and heightened demand. „Thus, I hope that the National Bank of Poland, particularly the Monetary Policy Council, will consider the pace of economic recovery and the living costs currently shouldered by the citizens of the Republic of Poland,” Hołownia wrote. Currently, the main NBP rate, the reference rate, stands at 5.75%.”
MPC members on interest rates
MPC member Iwona Duda recently remarked that if any interest rate reductions were to occur in 2025, it would only be feasible towards the year’s end, and the extent of policy easing would be limited. – It is worth noting that even within our region, certain central banks from Central and Eastern Europe, after a decrease in inflation has slowed, are either holding off on further rate cuts or are even adjusting rates upwards. In Poland, we aim to avoid raising interest rates, which is why we must maintain them at their current level longer to ensure inflation follows a trajectory that guarantees a sustained downward trend towards the medium-term inflation target – only then can we consider reductions – Duda stated in an interview with PAP Biznes.
Read more: When will interest rates be cut? There is a voice from the MPC >>>
Another MPC member, Ludwik Kotecki, mentioned in „Puls Biznesu” that he anticipates any interest rate cuts to occur at the beginning of the third quarter, by September at the latest.
„In my view, it will happen this year, although CEO Adam Glapiński is currently distancing himself from this notion. It will occur at the beginning of the third quarter, no later than September. I believe the minimum scale of reductions will be 50 basis points, as there is capacity for that. The maximum could reach 100 points, but achieving this may prove challenging this year,” Kotecki stated, as quoted by „PB”.
