Market interest rates have hit a new record this month, reaching their highest level in 40 months. The inter-bank lending rate, the three-month WIBOR, rose from 4.84 percent to 4.96 percent in May, a figure last seen when the debt crisis was ravaging. Back then, banks were afraid to lend money at all out of fear of debtor’s insolvency. Today, the slump is seen as a result of domestic policy, as Poland’s Monetary Policy Council has raised the reference rate of the Poland’s National Bank by as much as 25 basis points.
“The rising rates on interbank market is a result of the National Bank’s interest rates increase”, says Piotr Biernacki from BZ WBK, as the reference rate determining the rates at which the banks lend to themselves. It signifies that along with banks, borrowers will also have to pay more for their loans.
