Holding interest rates at their current low levels is likely to lead to further consolidation of Poland's banking sector, as larger state-owned companies absorb smaller players. The RPP decision follows the finalisation of the long-awaited foreign exchange (FX) loan-conversion scheme, targeted at Polish households struggling with spiralling mortgage repayments in Swiss francs..
After 2018, demand for household loans and credit growth is expected to rise as wages and consumption strengthen.
Rising demand for loans in the household segment will however depend on the government's introduction of more capital-incentive schemes.
After Unicredit's upcoming sale of Bank Pekao, more foreign-owned units including Raiffeisen Polbank will be sold to local entities in 2017.
