Angry deputies accuse Balcerowicz during Sejm debate on monetary policy

A Sejm debate on monetary policy Friday heard National Bank of Poland (NBP) governor Leszek Balcerowicz make a robust defense of the Monetary Policy Council's (RPP) interest rate policy. During the debate, which featured a frank exchange of views between Balcerowicz and Finance Minister Marek Belka, the RPP faced censure from the ruling Democratic Left Alliance (SLD) over its perceived lack of concern for the state of the economy. Balcerowicz once again insisted the RPP will not yield to political pressure and pointed to the fact that since February 2000 the NBP's reference rate has been slashed from 11.6% to 6.3% in real terms. In response, Belka pointed out that the RPP has never yet managed to achieve its annual inflation target, and claimed that this year the inflation outturn is also likely to be below target, leaving room for a lowering of interest rates. Balcerowicz also faced a series of questions from angry deputies, who asked if it was true reforms he had introduced had led to a doubling of the suicide rate. Another deputy wondered, "Why is it that the more you are praised in the West, the worse our country is doing?" (Gazeta Wyborcza, Mar. 2-3, p.1; Rzeczpospolita, Mar. 2-3, p. B1) T.J.