Poland faces inflation risks and gaps in senior housing finance

Poland faces economic uncertainty as inflation rises and the Monetary Policy Council (RPP) prepares to decide on interest rates. While the CPN program is expected to lower inflation by approximately 0.7% monthly, NBP President Adam Glapiński has warned that inflationary pressures are spreading through the economy, potentially necessitating rate hikes in 2027.

In the housing and financial sectors, a significant gap exists in senior support. Despite a 2014 law intended to facilitate reverse mortgages through banks, the product has failed to gain traction in the banking sector due to perceived risks and long time horizons. Consequently, many seniors are turning to private mortgage funds for life annuities, which often require the total loss of property rights upon signing, leaving heirs with no recourse.

Economists and RPP members remain divided on the outlook. While some anticipate stable rates in the immediate term, others, such as Joanna Tyrowicz, suggest that rates may need to remain higher to combat persistent inflationary risks.