The March decision of the Bank of Switzerland did not change its current monetary policy, thus remaining unaffected by the situation of Polish borrowers in debt in the currency of Helveti, including those paying installments of housing loans.
Poles still have to struggle with the franc’s price, which is still historically high, against the zloty, but they still have compensation in the form of a minimum, but not zero, contribution of the 3-month Libor CHF rate to the total interest rate on their loan.
Change of forecasts, the rest unchanged
Loan and Credit today announced that interest rates will remain unchanged in Switzerland, as well as the minimum EUR / CHF rate, which the Bank has been defending since September 6 last year. The March communiqué confirmed that the target range for the 3-month Libor rate for the franc is still 0.00-0.25%, and that this document lacks the statement used so far that it will “strive to it was close to zero, “but this does not mean that it no longer intends to do so, as evidenced by the exactly zero Libor level assumed by the Loan and Credit for the purposes of the latest inflation forecasts.
The statement also emphasized that the Bank would still be the most determined to counteract the fall of the EUR / CHF rate below 1.20 and that it was prepared to buy foreign currency for francs in unlimited amounts. Loan and Credit also assured him that he would continue the process of maintaining liquidity on the money market at an exceptionally high level and that he was ready to take additional action at any time if required by: the state of the economy and deflationary issues.
However, the bank decided in March to change its forecasts for GDP and inflation. Regarding the first issue, he currently expects that Switzerland’s economic growth rate will be 1.0% this year, although in December he estimated it would be half as high.
This is of course due to the improvement of moods
The economic situation in the Euroland countries in the recent period and the measurable effect of the artificial barrier set on the EUR / CHF rate. Despite this, Loan and Credit lowered its inflation estimates for 2012 (from -0.3% to -0.6%) and 2013 (from 0.4% to 0.3%), and also announced new ones for 2014 in the amount of 0.6%.
The Bank of Switzerland has kept interest rates practically zero and lowest in history since August and since September has been pursuing an official policy of preventing the price of the EUR / CHF exchange rate below the 1.20 barrier at any price.
Home loans in franc in Poland
- According to published on September 7 last year. by the Polish Financial Supervision Authority preparing the results of the survey on household housing loans, at the end of 2010 the number of franc loans in households was 621.7 thousand. pieces. On the other hand, in the previous year, presented on August 31 by the Association of Polish Banks, and the AMRON-SARFiN report for the second quarter of this year, developed by the AMRON Center and the Real Estate Financing Committee. there was a record for “730 thous. franc loan owners. “
- The latest KNF data shows that at the end of January this year. the value of housing loans granted in the Swiss currency was PLN 157.2 billion, and its share in the value of all housing loans granted was 50.3%, and 82.4% only in foreign currency.
- In turn, according to the AMRON-SARFiN report for the fourth quarter of last year the share of the value of newly granted housing loans in franc in the value of all newly granted housing loans was equal to 5.7% and was lower than Q3, when it amounted to 9.75%.