News About Poland - The Polish Outlook

Swiss Deflation Encourages Polish Homeowners

Swiss inflation running at a higher than expected rate has Polish homeowners hoping that there will be a long-term reduction in their mortgage payments.

Polish Home

Over 700,000 Polish homeowners financed their homes in Swiss Francs when the Franc exchange rate was about 2 Zloty to the Franc. The Franc has had a reputation for long-term stability which reputation was suddenly tarnished with the Franc exchange rate rising to 3.6. See Polish Home Owners Hammered

Swiss deflation was expected to be .1 . But in the last month deflation increased to .3. The annual rate is higher than expected.

This unexpected increase saw a short-term decrease in the exchange rate. But it quickly went back to where it was.

It is expected that Swiss deflation will continue and there is hope on the part of Polish homeowners that the deflation rate will continue to be higher than expected and that that will eventually reduce the monthly mortgage payments that must be made by Polish homeowners.

For information in Polish see Swiss Deflation