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Home Prices To Start Dropping Gradually In H2 (PKO)

POLAND
  • PKO Bank expects home prices to start dropping gradually in H2 following the sharp tightening in financial conditions and more stringent policies.
  • We saw multiple times that leading indicators (i.e. yield curve, 2Y change, business sentiment) have been pricing in a significant deceleration in the economic activity in H2 (see chart).
  • Rafal Gawin, head of Poland’s energy regulator URE, expects electricity prices for households to increase by “several dozen” percent next year (BBG).
  • President Duda commented on Twitter that he will sign mortgage moratoria bull on July 14 (grants mortgage borrowers right to suspend their loan repayment for 8 months in 2022/2023).

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