Accelerating economic growth may not mean an end to interest rate cuts
Members of the Monetary Policy Council (RPP) think that an acceleration in economic growth would not have to mean an end to cutting interest rates, and any decision on further loosening of monetary policy is dependent on controlling inflation. "If there is no inflationary pressure from growing salaries and food prices, and conditions in the agriculture sector do not lead to increasing the risk, then further loosening of monetary policy through a cut in rates is possible," stated Wiesława Ziółkowska from the RPP. The Council members also think that an important issue for the future level of inflation is the złoty exchange rate, which in June, lost 2.5% and 1.3% against the Euro and the US dollar respectively. This was due to a drop in the value of the Hungarian forint and a drop in the value of bonds both on the domestic and global markets. "I estimate that GDP growth should exceed 3% in 2003, and if this forecast were met, then a growth of 5% in 2004, would be very likely," added Ziółkowska. (www.onet.pl) M.M National Health Fund financial plan for this year, accepted by Health Yesterday, Health Minister Leszek Sikorski, accepted and signed the National Health Fund (NFZ) financial plan for this year. The Ministry has maintained earlier assumptions that NFZ is to receive zł. 28.5 billion from health contributions; that is zł. 2 billion more than the health funds received last year. NFZ is to cut administrative costs by 20% as of September 1, through cuts in compensations as well as layoffs. Details of the new financial plan for this year have not yet been revealed. "The documents are being analyzed by financial officials, and a meeting with the NFZ division directors is to take place on Wednesday, when more information will be made available," reported the NFZ press office. The government is to decide today on the form of compensation for the hospital cost increases, which were a result of employee wage raises. Sikorski has proposed to allow the Fund to issue bonds of zł. 3.5 billion. The funds would be transferred to the hospitals, and the bonds would have a 10-year maturity period. (Rzeczpospolita, p. A3) A.K.
