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End of great investments ? |
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Written by admin
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Monday, 19 January 2009 |
Over recent months the interest rate on deposits in some banks has fallen by nearly 4 percent. For such a large reduction in the Bank of Poland decided to Cooperatives. Interest rates on deposits have been uplifted and fall. We see no need to pay so much for deposits. We do not have any problems. However, in many banks, even after recent interest rate cuts on investments is much higher.
For example, a bank which has the largest share of deposits in the Polish market and continue to offer 7 percent on investments. profit per year. - It should not expect changes, but seeing the action of competition. A further reduction in rates of NBP will be a new element, which always makes the changing market conditions and then we wonder.
In recent months, bank deposits at the downloaded more than 13 billion $. The decision on a possible reduction in interest rates will be of paramount importance for the whole market. For now, bank inhibits the amount of reductions in other banks.
The impact on the interest rate on deposits of banks have some problems with liquidity. As long as the interbank market is not functioning normally, the increase in deposit share is the easiest way to acquire resources, such as business credit. Therefore, some banks postpone a decision to reduce interest rates. But the room for maneuver is reduced, because the MPC interest rates have already dropped rates by 1 percentage point. According to specialists, the annual decline in inflation to 3.3 percent. means that already this month we can expect lower rates in the rates by a further 0.5 percentage points. Even MPC members argue that this year the main rate dropped to below 4 percent. - Some banks lowered interest rates by 2 percentage points. and more to respond in advance to future decisions RPP. |
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Last Updated ( Monday, 19 January 2009 )
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Business & Financial 
