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oles withdraw cash from banks amid high inflation

July 1st, 2021

Polish households withdrew close to PLN 6 billion (EUR 1.33 billion) from banks in May as inflation topped 4 percent while interest rates offered by banks are close to zero, the Rzeczpospolita daily said. Such an outflows were seen only twice over the past 25 years, the daily noted. "According to experts, money from terminated deposits was spent on consumption, investments and the real estate market," Rzeczpospolita wrote. "The reason is 4 percent inflation, much higher than the average interest rate on deposits, which is a mere 0.2 percent."


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