Poland's aggressive rate cuts amplifying profitability pressure for banks: Moodys

On 28 May, the National Bank of Poland lowered its reference rate by 40 basis points, bringing the rate down 140 basis points cumulatively with three rate cuts since 17 March to a historic low of 0.10%. Easing monetary policy is part of the authorities' policy response to soften the negative effect of the coronavirus crisis.

“The interest rate cuts will significantly reduce Polish banks’ net interest margins and add to potential profitability pressures amid lower business volume and rising…