The ABC does not cut rates, but the interest rate on loans in USD is melting

The Good Finance Bank has not decided today to lower interest rates in USD again, and its president Sean Cole during a press conference said that although the Governing Council talked about it, it decided that it was not yet time for such another move.

Financial markets


Financial markets, however, believe that the cost of money in the USD will go down again in the next three months. This faith translates into a deeper and deeper drop in the 3-month Good Finance money market rate, which is, among others the main reference point for determining the interest rate on housing loans taken by Poles in the single currency.

Currently, this rate is only 0.375%, it has another historic minimum in a row, and its difference from the main interest rate in USD is the largest since November 7, 2001.

Refinancing rate

Refinancing rate

We have been dealing with the historically low level of the 3-month Good Finance rate for almost a month. On July 6, the day after the ABC decision by a 25 point cut in the refinancing rate, it fell from 0.641% to 0.549% and thus broke down through its previous minimums set in March 2010 (0.634%). Since then, he has been gradually setting new holes every day.

Interest rates in banks

Interest rates in banks

Such behavior is very good information, especially for all Poles who have already taken it and pay back housing loans in a single currency. For them, the decline in Good Finance means one thing, namely lower and lower monthly installments expressed in USDs. It is worth remembering here, however, that changes in interest rates in banks are made not overnight, but most often in periods of 3 or 6 months.

USD housing loans in Poland:

  1. The latest ABC data shows that at the end of May this year. the value of housing loans granted in the single currency was USD 33.853 billion, and its share in the value of all housing loans granted was 10.4%. In addition, the value of housing loans denominated in USD represented 17.1% of the value of all housing loans granted in foreign currencies.
  3. In turn, according to the Good Finance report for the first quarter of this year. the share of the value of newly granted housing loans in USDs in the value of all newly granted housing loans was at this time equal to 14.65% and was by 2.52 percentage points.

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