Let’s see what affect negative interest rates and whether they rescue for Polish frankowiczów.
The interest rate is expressed as a percentage of the price that the borrower must provide the holder of the share capital by making it available for a limited time. Term interest rate may however refer to a number of indicators. On the one hand, it is the rate of the central bank, which, inter alia, Poland determined by the Monetary Policy Council, the reference rate, the amount since last October to 2%. NBP interest rates in turn influence the amount of market interest rates, ie the price of money in the interbank market. Market average of these feet is in turn WIBOR, which increased by the interest rate margin is PLN PLN loans.
Compare online cash loans and choose the one with the lowest installment
Why in the red?
The specific situation is, however, the occurrence of negative interest rate. The fact that redefines the direction of flow assumption for salary – negative rate means that the consideration for the loan is not passed on to the holder of the capital, and the person / organization receiving the deposit. Put simply, the holder loses the capital, and the borrower becomes.
In theory, no investor is interested in using the deposit, after which not only does not gain, but loses assumptions. But in fact occur in the financial market situation in which investors agree to pay subsidies in order to avoid the risk of incurring a much larger loss using other investment tools.
Negative interest rates can function not only in the case of certain instruments – eg. bonds, but also affect the price of money in the interbank market, as well as central bank rates. Changing their value is in fact one of the tools of monetary policy of the country – juggling interest rates may affect because the height of the lending or exchange rates against the national currency. So far, the introduction of negative interest rates, among others, decided to the central bank of Sweden and Denmark.
Reflection on CHF LIBOR
The negative interest rates has also introduced the Swiss National Bank (SNB), which is not without significance for Polish borrowers in debt in francs, especially after how SNB “freed” the franc, and its exchange rate against the buck soared.
Search cash loans. Compare loans in different banks.
The SNB’s decision to introduce the deposit rate at -0.75 percent. caused that also plunged below zero CHF LIBOR. This along with a margin of banks is at the basis for the calculation of interest on mortgage loans in Swiss francs. Taking into account the negative values make it as “ate” part of the bank margin, which will translate into the interest rate / amount of installment / frankowych cost loans. For example, if the interest rate on the loan is determined based on CHF LIBOR plus a margin of 1.75% and LIBOR CHF falls to minus 0.80%, the interest rate on the loan is lower than the profit margin of the bank, ie. Will amount to 0.95% .
Do you take into account the negative levels can relieve CHF LIBOR frankowiczom indebted? Yes, but not really, because it has no impact on a significant decrease in the amount of the installments. This, it is possible with the rapid depreciation of the franc, which in the near future, it is hard to imagine. C ertainly, it has reached the level of six years ago, when it was 2.20 zł.
No comments:
Post a Comment