WIBOR rates on the interbank market
Posted: Tue Dec 24, 2024 9:58 am
Today we will check what WIBOR rates are and what they are for. We often read about them in industry studies. However, not everyone knows exactly what impact they have on the market. This article will allow you to familiarize yourself with these concepts. Additionally, you will also gain the ability to analyze the situation based on your own observations and conclusions. It is worth noting that WIBOR is one of the basic elements that affect the amount of installments of loans in PLN.money-proc
The abbreviation WIBOR stands for Warsaw Interbank Offer Rate. This is the interest rate at which banks grant each other loans in PLN. WIBOR is set every business day at 11:00. Its value is determined based on proposals provided by the largest banks in Poland. Institutions participating in determining the rate (so-called fixing) provide their proposals for the interest rate based on which they are ready to lend money to other banks. Then, extreme values are rejected and an average is drawn from the remaining values. The correct course of the WIBOR fixing is supervised by the Financial Markets Association ACI Polska. You have probably also come across the name LIBOR, which is its Swiss equivalent and is calculated for the Swiss franc. I myself referred to this topic when writing a review on mBank opinie ekonto osobowa.
Six-month WIBOR rate
WIBOR6M, or 6-month WIBOR rate, describes the price of deposits on the market, concluded between banks. In the case of loans, it is updated every six months. WIBOR is linked to the interest rate el salvador whatsapp database and is marked in %. In the case of taking out a loan, it is worth paying attention to whether economists predict an increase in interest rates in the coming months. If we are dealing with such a situation, it is worth choosing WIBOR 6M instead of 3M, as a method of updating our installments. In the case of confirmation of the assumed increase in reference rates, the amount of our installment will be increased only after 6 months.
VIBOR3MChristmas spending
Three-month WIBOR is abbreviated as WIBOR 3M. It is most often used to calculate interest rates for housing loans and for businesses. Banks often use a base rate to calculate mortgage loan installments, with the possibility of updating it up to 4 times a year. The rate is the arithmetic average of three-month WIBOR. Its values come from the first five business days of the month, which precedes a possible rate change.
Relationship between interest rates and WIBOR
WIBOR rates on the interbank market are usually linked to interest rates. The rates are of course set by the Monetary Policy Council (MPC). When WIBOR rates rise, we can talk about an increase in reluctance among banks to lend each other money. Such movements can also occur regardless of changes in interest rates made by the MPC. An example is the increase in WIBOR in the fall of 2010. When a large capital transaction took place on the Polish market. I mean the purchase of the telecommunications operator Polkomtel by businessman Zygmunt Solorz Żak. This transaction was credited and caused an increase in WIBOR3M and WIBOR6M. The increase in rates took place regardless of the interest rates, which remained unchanged at that time. Some economists even expected them to be lowered.
The abbreviation WIBOR stands for Warsaw Interbank Offer Rate. This is the interest rate at which banks grant each other loans in PLN. WIBOR is set every business day at 11:00. Its value is determined based on proposals provided by the largest banks in Poland. Institutions participating in determining the rate (so-called fixing) provide their proposals for the interest rate based on which they are ready to lend money to other banks. Then, extreme values are rejected and an average is drawn from the remaining values. The correct course of the WIBOR fixing is supervised by the Financial Markets Association ACI Polska. You have probably also come across the name LIBOR, which is its Swiss equivalent and is calculated for the Swiss franc. I myself referred to this topic when writing a review on mBank opinie ekonto osobowa.
Six-month WIBOR rate
WIBOR6M, or 6-month WIBOR rate, describes the price of deposits on the market, concluded between banks. In the case of loans, it is updated every six months. WIBOR is linked to the interest rate el salvador whatsapp database and is marked in %. In the case of taking out a loan, it is worth paying attention to whether economists predict an increase in interest rates in the coming months. If we are dealing with such a situation, it is worth choosing WIBOR 6M instead of 3M, as a method of updating our installments. In the case of confirmation of the assumed increase in reference rates, the amount of our installment will be increased only after 6 months.
VIBOR3MChristmas spending
Three-month WIBOR is abbreviated as WIBOR 3M. It is most often used to calculate interest rates for housing loans and for businesses. Banks often use a base rate to calculate mortgage loan installments, with the possibility of updating it up to 4 times a year. The rate is the arithmetic average of three-month WIBOR. Its values come from the first five business days of the month, which precedes a possible rate change.
Relationship between interest rates and WIBOR
WIBOR rates on the interbank market are usually linked to interest rates. The rates are of course set by the Monetary Policy Council (MPC). When WIBOR rates rise, we can talk about an increase in reluctance among banks to lend each other money. Such movements can also occur regardless of changes in interest rates made by the MPC. An example is the increase in WIBOR in the fall of 2010. When a large capital transaction took place on the Polish market. I mean the purchase of the telecommunications operator Polkomtel by businessman Zygmunt Solorz Żak. This transaction was credited and caused an increase in WIBOR3M and WIBOR6M. The increase in rates took place regardless of the interest rates, which remained unchanged at that time. Some economists even expected them to be lowered.