Retail banks react to RPP rate cut with lower interest on loans and deposits

Following the latest interest rate cut announced by the Monetary Policy Coun cil (RPP), the major domestic retail banks have acted quickly to adjust inte rest rates on both deposits and loans. In response to the 1.5 percentage poi nt reduction, the RPP's sixth rate cut this year, the fixed interest rate on three-month deposits at PKO BP, Pekao S.A., Bank Zachodni WBK, Bank Gospodar ki Zywnosciowej, ING Bank Slaski, Bank Przemyslowo-Handlowy and BIG Bank Gda nski has come down by an average of 1.3 percentage points, to stand at 8% an nually. The floating interest rate on one year deposits has been reduced by one percentage point, to 9%. The average interest rate on consumer loans has been cut by an average 0.7 percentage point. (Rzeczpospolita, Dec. 8-9, p. B 5) P.J.