The example of Poland shows how painful the turnaround in interest rates can be. Many borrowers there have taken out mortgage loans with variable interest rates. Because the central bank has to fight inflation, these have become massively more expensive. The government is helping, which outrages economists.
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Anyone who has bought their own home in Poland suddenly has to pay a lot more for it because interest rates have risen rapidly.
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The high rates of inflation are making Poland’s government increasingly nervous, and it is reacting with measures that are sometimes causing outrage. What the government is doing is ridiculous, says economist Piotr Kuczynski from the Warsaw investment firm Xelion.
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