Commercial banks slow to lower interest on loans but fast to cut deposit rat es

Following last week's decision by the Monetary Policy Council (RPP) to cut i nterest rates, the country's leading commercial banks have already lowered r ates on deposits, but have been much more hesitant about lowering interest o n loans. Bank Pekao S.A. cut interest on deposits immediately, but won't int roduce lower interest on loans until December. "Banks are using high interes t on loans to compensate for losses caused by dwindling margins on the corpo rate market," said BIG Bank Gdanski brokerage analyst Marcin Materna. A Praw o i Gospodarka poll shows banks expect interest rates on commercial loans to fall by an average of 409 basis points over the next 12 months, with consume r loan rates falling by 396 points. (Puls Biznesu, p. 4; Prawo i Gospodarka, p. 1) T.J.