Analysts predicting RPP will set inflation target of 4% to 6% for 2002

It has been confirmed that the Monetary Policy Council (RPP) will define the inflation target for 2002 at its next meeting, scheduled for late August. Commenting on the likely deliberations of the RPP, Janusz Jankowiak, chief economist with BRE Bank, said, "There are two limitations on defining the inflation target. The first is the projected rate of inflation at the end of this year, which would amount to 6%. The target for next year should not be higher. The second limitation is the so-called medium-term target, assuming inflation falling to below 4% at the end of 2003. In this case it would be most reasonable to define an inflation target of 4% to 6% for 2002." According to Zsolt Papp, ABN Amro economist in London, the RPP would prefer 4% to 6% rather than 5% to 7%, as this would allow it to maintain the restrictive monetary policy. (Rzeczpospolita, p. B1) K.K.