Interest rate cuts and proposed tax on interest bring down banking climate index

Poland's Pengab banking climate index dropped in November, following the fifth interest rate cut this year and amid concerns that a proposed tax on interest earned on savings may hurt deposits. The Pengab fell by 6.8 percentage points to 18.1, a record low since late 1993, when it was first compiled. It was 14.8 points down from November last year. The index is counted as a percentage point difference between positive and negative answers from a poll of bank managers. The survey, commissioned monthly by the Polish Banking Association (ZBP), polled 202 managers between November 6 and 8. (Reuters)