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Moody’s: Rate Cuts Credit-Negative for Polish Banks

Politics ♦ Published: June 11, 2013; 12:22 ♦ (Vindobona)

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The recently passed cut in interest rates by Poland’s Monetary Policy Council has a negative effect on credits for Polish banks, rating agency Moody’s announced.

Moody’s: Rate Cuts Credit-Negative for Polish Banks / Picture: © Moody's Investors Service, Inc. - Annual Report 2013

Banks like PKO BP and Pekao are most affected by the cut because of their dependence on interest income.

Last week Poland’s Monetary Council dropped Poland’s main interest rate by 25 basis points to a record low of 2.75 percent while economic growth in the first quarter was weaker than expected. The rating agency explained low interest rates were negatively affecting credits…