Balcerowicz not convinced by January inflation figure

Central Bank governor Leszek Balcerowicz said yesterday that a drop in annual inflation to a record low of 0.4% in January was not a significant basis for interest rate decisions. "We look at data as a whole. It is not important if in a given month inflation amounts to 0.4% or 0.5%," he told reporters after giving a lecture in Torun. "This is not a significant factor in making decisions the impact of which will be felt in a year's time," Balcerowicz added. Some government officials are not ruling out a period of deflation, created mainly by an overly restrictive monetary policy. The Central Bank will meet on February 25-26 to discuss rates. (Reuters) A.C.