Bank Pekao expects a moderate increase in the cost of credit risk in the coming months due to the high level of the reference rate in an environment of high inflation and slowing GDP, the bank announced.
The increase in interest rates has not translated into a deterioration in the quality of the loan portfolio. The cost of credit risk is expected to increase moderately in the coming months due to the high level of the NBP reference rate in an environment of high inflation and slowing GDP, according to the banks results.
Elevated risk may apply to PLN mortgages granted during the period of low rates in 2020-2021, as well as consumer cash loans. The situation of borrowers should be stabilized by credit vacations, the bank announced.
The bank recalled that the Monetary Policy Council (MPC) has suspended the hike cycle (after 11 decisions to raise rates), and it is likely that even a significant revision of forecasts in November will not prompt the MPC to resume it. The wicket, however, remains open. However, it is worth remembering that the space for hikes in the MPC’s view is not large, added the bank.
Source: Bank Pekao and ISBnews
