RPP's interest rate cut wins the backing of the majority of companies

The zloty drifted somewhat yesterday after a brief rally following Wednesday's aggressive 150 basis point interest rate cut by the Monetary Policy Council (RPP). Analysts had expected the zloty to ease if the central bank lowered rates and decreased the lucrative differential between Poland and Western Europe. Still, the majority of Poland's retail banks were quick to react to the RPP's decision, declaring their intention to cut their own rates. Pekao SA and Fortis Bank were the first to announce that they would alter their savings and loan rates. Monitoring reaction to the RPP's move, the Rzezpospolita daily reports that the vast majority of companies support the decision. Some of those questioned, however, say that the step was too small and was taken too late. (Reuters, Rzezpospolita. p. B1) P.J.