Poland tells banks to give savers higher interest or expect more taxes

Robert Besser
06 Jul 2022, 23:30 GMT+10

As Poland's main interest rate remains at its highest level since 2008, the nation's banks have been asked to offer clients higher interest on their deposits or face higher taxes
This was announced by Jaroslaw Kaczynski, the leader of Poland's ruling party, intensifying government pressure on the banking sector to share the benefits of rising rates with savers
The high interest rate has been squeezing household budgets, in a country where floating rate mortgages are the norm

WARSAW, Poland: As Poland's main interest rate remains at its highest level since 2008, boosting the profits of Polish banks, the nation's banks have been asked to offer clients higher interest on their deposits or face higher taxes.

This was announced by Jaroslaw Kaczynski, the leader of Poland's ruling party, intensifying government pressure on the banking sector to share the benefits of rising rates with savers.

The high interest rate has been squeezing household budgets, in a country where floating rate mortgages are the norm.

"I do not want to decide for the bankers, but it must be a solid percentage, not at the level of inflation, but enough for people to feel that this money will lose much less value when it is in the bank," Kaczynski said during a speech in the eastern city of Bialystok.

"If not, then we will have to tax these profits, and that's it."

Polish Prime Minister Mateusz Morawiecki has previously criticized banks for not offering savers enough interest, and said in May he would use "persuasion" to make banks offer more money back to customers.

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